FTSE ended virtually flat on Wednesday as UK lawmakers expectedly ruled out the prospect of a disorderly departure from the EU in voting out a no-deal Brexit. The news bolstered the pound and in turn kept a lid on the FTSE’s gains despite OBR revealing a downgraded growth forecast for the UK economy this year in light of Brexit uncertainty. Today, MP’s will vote on a possible delay of the March 29 deadline set for the UK’s withdrawal from the EU , which would further prolong Brexit’s already indefinite course.
The Footsie drifted slightly higher on Wednesday before closing with a modest gain of 0.11% at 7159. Investors should remain on the sidelines ahead of today’s looming vote and keep price action bounded by the Bollinger bands. Should price surpass the resistance at 7180, and the subsequent 7220 level, a test of the high at 7260 will come back into view. Alternately, a move below the 7080 support line would suggest bearish price action.
Support: 7080/ 7000
Resistance: 7180/ 7260