Major European indices edged higher on Tuesday, while the Footsie outperformed its peers as it rose 0.69%. A weakening pound helped lift the FTSE as upbeat UK services data failed to impact the currency’s decline amidst concerns that PM Theresa May’s Brexit deal will be rejected by the UK Parliament in next week’s vote. While Brexit uncertainty weighs on the pound and in turn keeps the FTSE afloat, investors will continue to monitor US-China trade headlines for clarity on the global trade front.
Since declining from its peak at 7260 to a low of 7060 , the FTSE has been climbing higher and managed to end at 7183 on Tuesday. A retest of the 7260 peak remains likely, should the index sustain above the resistance zone at 7190 and the 50-period MA. Failure to sustain above this level, should drive the index back down to lower support levels.
Support: 7130/ 7060
Resistance: 7260/ 7310