European Indices ended higher on Friday with the Footsie outperforming other European peers as it rose 0.74%. Signs of trade progress between the US and China boosted sentiment and offset weak Chinese manufacturing data underlining the nation’s economic slowdown. With the energy sector making up a good portion of London’s blue chip index, trade developments will continue to impact the Footsie’s sensitivity to the global economy. Meanwhile in the UK, Brexit headlines remain in focus whilst investors await BOE’s economic outlook this Thursday.
Though the FTSE has managed to break psychological resistance at 7000, it has yet to sustain above this level in order to determine bullish price action and a move towards resistance at 7075. The RSI reading is close to the overbought threshold suggesting price action may be subdued above the support at 6950 before extending its apparent rally.
Support: 6995/ 6945
Resistance: 7075/ 7140