The FTSE traded 0.59% higher on Monday as European equities found support on positive Brexit updates.In the UK, Johnson’s new Brexit proposal was cautiously well received by EU officials however uncertainty persists as he was offered until the end of the week to provide the full plan and also stated that he would request an extension to the October 31st if need be. Moreover, cautious sentiment towards the US-China trade situation should be factored in as it would limit the upside potential on the FTSE ahead of the scheduled trade talks on Thursday. Today there are no impactful economic releases out of the UK and Eurozone. Traders should continue to monitor Brexit and trade headlines as geopolitics remains the key drivers of price action.
The FTSE has continued to trade higher since finding support at 7000 as it extended gained by 42 points to end at 7197 on Monday. Today, look for a sustained move above 7215 to target the resistance near the 20-period MA at 7240. Failure to trade above 7215 would lead to the FTSE’s retreat where a sustained decline below 7180 would indicate selling pressure and target the lower support levels at 7150 and 7120.