The FTSE ended 0.47% lower on Tuesday as the UK Supreme Court ruled PM Johnson’s suspension of parliament as unlawful. The news boosted the pound which normally weighs on the FTSE’s internationally exposed members and heightens the uncertainty that hangs over Brexit. Moreover, reports on an impeachment enquiry against President Trump aggravates global political turmoil and maintains markets’ risk off mode. Today, traders should look to trade headlines and political developments in the UK and US to determine market sentiment and price action on the FTSE which is likely to remain under bearish pressure.
The FTSE lost 34 points to end at 7291 on Tuesday. The price is gradually trending lower as is the corresponding RSI reading. Look to the 20-period MA at 7330 to provide dynamic resistance on the FTSE with a trade above this level required to indicate buying pressure and target the 7350 level. Failure to edge above the 7330 level will maintain selling pressure while a sustained decline below 7290 is required to target the lower support at 7265 and 7235 near the 100-period MA.