The FTSE 100 edged 0.2% higher, outperforming the rest of the European indices. Weak economic data from the UK prompted a further decline in the pound, lifting the internationally exposed index that benefits from the weakening of its corresponding currency. While progress on the US-China trade war, a driver of the FTSE index, remains on hold, investors will look towards today’s Services data to further highlight Britain’s lagging economic performance.
The FTSE successfully broke past the 100 day MA leaving the index in positive territory. The price hung on to modest gains as it reached 7044 before closing lower at 7034. While the RSI reading indicates an overbought threshold, a build in upside momentum will enable prices to test the resistance at 7140 whilst holding above the 7000 level.
Support: 7000/ 6945
Resistance: 70140/ 7225