FTSE ended 0.61% higher at 7446 on Friday boosted by US-China trade optimism and potential for a prolonged extension of Brexit. While uncertainty continues to linger and parliament remains divisive over the UK’s manner of withdrawal from the EU and the length of the possible delay, this week’s Brexit developments amongst UK lawmakers and between the EU will further determine outlook on the FTSE ahead of the April 12 deadline. Moreover, the effects of the latest developments on the domestic currency will also impact the Footsie which normally benefits from a lower pound.
The FTSE managed to extend gains past the resistance at 7420 to face new barrier at the 7470 level. Breaking through this level will determine whether the bulls are capable of advancing price towards higher levels. Holding above the 7420 level will indicate the presence of buyers while a move below this level may lead the index towards support at 7370. Moreover, despite the RSI reading indicating overbought territory, bullish momentum may result in further gains before short-term weakness shows up.
Support: 7420/ 7390
Resistance: 7470/ 7510