On one hand, the FTSE100 is under pressure as Germany and UK Brexit talks lack significant progress on an official level, Retail Sales data prints negative, and UK energy stocks drop along along with the prices of oil. On the other hand, housing demand in London picks up with major development companies reporting increases in pre-tax income. Trade war developments between US and China remain the markets major driver. In economic news, investors await ECB’s Lautenschlaeger speech at 12:45 GMT, for an insight on the possible direction of monetary policy.
From a technical perspective, the FTSE100 bear market trend is confirmed on 4H and 1H time frames with the 50-period SMA crossing the 200-period SMA from above awaiting a final confirmation on the daily chart. An hourly close below 7368.8 would give way to our first support level of 7305.6.
Support: 7305.6 7196.6
Resistance: 7419 7524.6