The FTSE traded 0.44% lower on Friday as trade pessimism alongside political turmoil in Italy weighed on market sentiment. President Trump’s remarks on Friday dimmed the chances that the US and China would meet next month to continue trade talks. In the UK, GDP data showed the economy contracted for the first time in 6 years as the figure declined by 0.2%. The news dragged the pound as well as UK equities. Looking to the week ahead, the latest GDP data will garner much attention on the release of retail sales, employment and inflation data from the UK. Today there are no major economic releases to impact price action leaving influence to political and trade headlines.
The FTSE lost 32 points to end at 7253 on Friday. The price reached a high of 7297 before edging lower to hold below the 20-period MA. Today, look to the 20-period MA at 7280 to determine near-term direction on the FTSE as a sustained move above this level would indicate buying pressure and increase the chances of testing the resistance zone of 7315/7330. Failure to hold above 7280 would lead price lower with initial support at 7240 followed by 7185.