Sino-US trade talk was enough to spark a recovery in global equity markets, as the FTSE100 jumped 1.27% and closed at 6806.94. Britain’s withdrawal from EU undergoes a delay as PM Theresa May makes a futile attempt to modify the Brexit deal in fear of defeat and was told by EU officials that there was no room for renegotiations. The development over Brexit caused the pound to slide before making gains on yesterday’s positive UK wage growth figures, but has left a seemingly weakened inverse relation between the sterling and Footsie Index as both are weighed down by the concerns surrounding Brexit. Traders can expect volatility for the blue-chip index as political uncertainty persists to cloud investors’ judgement.
The Footsie Index is looking to move above yesterday’s high around 6857, with the MACD crossing well above zero line, as buyers push for a possible uptrend to meet further resistance levels around 6870-6911. Whilst it is constrained within the tight bands between 6715 and 6870, If the index fails to break resistance at 6857, it could reverse to the downside meeting key support level around 6680.
Support: 6720/ 6659
Resistance: 6870 / 6985