The choppy trading last Friday comes after President Donald Trump warned that he could pull the US out of the World Trade Organization, making it the latest agreement to be targeted as part of the president's "America First" trade strategy. The UK's FTSE100 Index tumbled by 1%. UK's manufacturing PMI is expected today at 1230 UTC+3. Surveys show that optimism is at its lowest level this year as factory bosses fret about cost pressures, possible future trade tariffs, the exchange rate, and Britain's departure from the European Union - now only seven months away.
The FTSE100 index tumbled to a new 4-months low on Friday, bouncing back slightly from its 7,420 support mark. The index is now technically speaking in a downtrend making fresh new lows every time a support level is breached. The 200-period moving average remains the indicator to watch line for now. The RSI looks slightly bullish suggesting a move up to the 7,475 and maybe even the 7,520 in the short-term.
Support: 7420 7400
Resistance: 7475 7520