The FTSE index rises together with hopes of progress in the Sino-US trade deal and the continuation of negotiations today. In addition, the Fed’s meeting minutes from December will reveal factors influencing the stance on monetary policy with a statement by Powell to follow tomorrow. Alongside global fundamental events, Brexit uncertainties persist as divided UK politicians have yet to vote on the deal next week. Ahead of the day, the Bank of England Governor is to speak and comments on the nation’s political state and monetary policies may spark a reaction in the market.
The daily RSI reading on the FTSE crosses well above 50 and confirms the positive territory it has entered but has yet to reach the psychological mark at 7000. While price action has continued to correspond with the trend line on the RSI, A move past the resistance level at 6910 could signal further upside move.
Support: 6850 / 6784
Resistance: 6940 / 7000