The FTSE index closed virtually flat at 7133 on Tuesday. Global optimism surrounding news of the averted US government shutdown along with improved prospects for a US-China trade deal failed to impact London’s blue-chip index. Moreover, PM Theresa May’s request of parliament for more time on Brexit negotiations raises uncertainty over the outcome while BOE governor Carney highlights the detriments of a no-deal outcome amidst a decelerating global economy. On today’s economic calendar, UK inflation data is due and may impact FTSE’s price action.
The FTSE traded sideways in yesterday’s session and ended 0.06% higher. While the price is treading above the 20-period MA, and the support line on the RSI holds, failure to break through the resistance area of 7190/7220 will determine whether a bearish shift is in the picture. Meanwhile price will continue to range within the 7070-7160 levels before deciding on direction.
Support: 7070/ 7000
Resistance: 7190/ 7290