The FTSE retreated on Tuesday losing 16.3 points and closing at 7488.1 as the positive impact of a new North American free trade pact faded globally and Italy’s 2019 budget concerns impacted British bank stocks. The index was also dragged down by lackluster construction figures as it showed a weaker-than-expected reading of 52.1 in September, down from 52.9 in August. Big day for the pound as PM Theresa May is set to deliver one of the most important speeches in her political career, a defining Brexit moment, as she attempts to take back control of the Tory party and resuscitate her Chequers plan. In other economic news, Services PMI figures set to be released at 08:30 GMT.
The FTSE bounced off the 200 period SMA on the hourly chart and broke above our downtrend, reaffirming the 7477.8 support level. An hourly close above 7495.6 will add to the bullish momentum with our respective resistance levels as price targets, as RSI is above 50 and MACD indicator is showing a pickup in bullish momentum
Support: 7477.8 7442.7 7418.5 7399.3
Resistance: 7519.6 7532 7556.1