The FTSE ended virtually flat on Thursday as a surge in oil prices and a softer pound failed to maintain early gains. Meanwhile, US-China trade tensions are keeping markets on edge as they await further developments ahead of the two nations meeting later this month. In the UK, the political scene hasn’t left much of an impact on the FTSE as votes for a new leader remain inconclusive. BOE Governor Carney is due to speak later today and will be watched for monetary policy insight while retail sales and consumer confidence reports out of the US may provide the FTSE with direction during the day.
The FTSE managed to hold its ground as it ended flat at 7368 on Thursday. The price should hold above the 7370 resistance level in order to indicate buying pressure while overcoming the resistance at 7420 would signal the continuation of the short-term uptrend. Failure to hold above 7370 would increase the chances of re-testing the support of 7330 currently coinciding with the 20-period MA and separating the FTSE from bearish sentiment.