The Footsie rose 0.82% to close at 7129. GDP data shows that the UK economy slowed at the end of last year amidst the Brexit uncertainties and raises concerns, considering the lowered growth forecast, on how the economy will cope once Brexit is finalized and the UK withdraws from EU. As a result, the sterling declined and helped lift the internationally exposed Footsie index alongside optimism surrounding a round of US-China trade talks that begin later this week. Today, PM Theresa May shares a statement with the parliament on the progress of negotiations with the EU, BOE Governor Carney and FED Chairman Powell will be speaking and may impact price action with new remarks.
The FTSE rose after retreating from last week’s resistance around 7180 to close at 7129. Price is likely to range within the 7070-7150 levels before deciding whether it will decline to form a low on its trend line support or retest resistance level at 7180 to resume its uptrend. A support line on the RSI will indicate whether price will retreat further below the 7060 to target its next support at 7000.
Support: 7070/ 7000
Resistance: 7150/ 7220