The FTSE closed 0.84% higher on Friday as global markets were bolstered by trade hopes that were well met as the US and China reached a partial trade deal later in the day. Meanwhile in the UK, positive comments on Thursday that alluded to a potential breakthrough on Brexit further improved market sentiment. However today, the optimism regarding Brexit is fading and well exhibited by a declining pound as the rhetoric has turned unpromising. This could easily be reversed should markets see a flow of positive Brexit headlines. In terms of data, China’s exports and imports declined below their estimated contractions and this may weigh on FTSE members that rely on a sturdy Chinese economy. Apart from the mentioned data, There are no further economic releases to impact price action today and influence will be left to trade and Brexit headlines.
The FTSE gained 60 points to end at 7247 on Friday. The price reached a high of 7250 ,a level it would have to overcome in order to extend gains towards the higher resistance levels at 7270 and 7290. Failure to trade above 7250 would leave price ranging with a move below 7200 required to prompt a decline towards the 7170 and 7150 support levels.A higher move on the FTSE should be followed by a decline as the index is seen trending higher with a sequence of higher highs and lows.
Resistance: 7270 /7290