London’s blue chip index posted its 4th day of gains with a modest rise of 0.17% on Wednesday. The index is kept afloat by a weaker pound due to ongoing Brexit turmoil which led to another slashed growth forecast for the UK by the OECD. Global growth concerns rise with Europe’s slowing economy, lack of clarity on Brexit and the Sino-US trade dispute which continues to dominate market sentiment. Today’s market driver resides at the ECB’S meeting with a dovish outcome expected.
The Footsie ended at 7196, close to the 7220 resistance zone which is the first barrier price it must overcome to retest the high at 7260 and extend the rally further. If the index holds above the 20-day MA at 7130 this should act as a support to the bulls, while a break below this level points towards a test of the key technical support level at 7060.
Support: 7130/ 7060
Resistance: 7260/ 7310