The Footsie index rose 2.2 % in its last session due to improved sentiment over US data and the Fed’s dovish approach on rate hikes. Brexit debates are set to resume this week to address the imperfections of Theresa May’s Brexit deal as the outcome of the impending parliamentary vote next week will leave an impact on the British economy. China’s economic challenges are intensified alongside rising trade tensions between the US and China that are to be addressed today. The development of these factors will determine investors’ sentiment on the market.
The Footsie index crossed above the resistance zone of 6775 and rises towards its next resistance level around 6880. Should price action break above the level, The index could move further up. Otherwise it may hold below the level with its decisive support coinciding with the 50period MA.
Support: 6757 / 6684
Resistance: 6800/ 6940