The FTSE 100 joined the global stock indices in a sea of red on Wednesday after the release of multiple back-to-back economic figures that printed negative, along with sinking oil prices and slumping house prices . GDP ticked down to 0% , missing expectations of 0.1%, vs. a previous of 0.4% back in August. Manufacturing Production also came out lower at -0.2% vs. an expected of 0.1% , and a higher than expected Trade Balance deficit of -11.20B vs. an estimate of -10.90B. The index was also weighed down by the pound as rising hopes about a Brexit deal lifted the sterling, with Michel Barnier commenting that a Brexit deal can be achieved within days if May agrees on a customs union. In economic news, BoE credit conditions and bank liabilities survey will be released at 8:30 GMT, with MPC Member Vlieghe speaking at 10:45 GMT.
A death cross confirmed on the FTSE as the 50-period SMA penetrated the 200-period SMA from above on the daily chart, with a bearish candlestick closing way below the lower band of the Bollinger bands, and momentum indicators on the daily and 4H chart showing increased bearish momentum. A bullish RSI and price divergence registered on the hourly chart giving way for a small upside correction which will backfire if price remains below the 7087.5 resistance level.
Support: 6855.3 6657
Resistance: 7087.5 7234.1