FTSE closed down 0.3% at 7071 on Friday. The European commission and the UK downgraded growth forecasts for 2019 in light of Brexit uncertainties. Moreover, US-China trade tensions offer markets another reason to worry as the two nations’ officials have yet to meet this week to try and make some progress before an imminent deadline. Today, European equities are likely to be affected by the UK’s release of fresh GDP data and production figures as they highlight Brexit’s effect on Britain’s economic growth.
Though bullish momentum has weakened, The FTSE index remains in positive territory while it hovers above support of 7050 and maintains price action around the 20-period MA. Buying pressure will push the index above the 20-period MA to retest resistance zone of 7200/7220, while a move below 7050 will indicate selling pressure to test the support of the 7000 level.
Support: 7050/ 7000
Resistance: 7180/ 7295