The FTSE closed below 7300 at 7291.7 yesterday after printing a high of 7319.8. The index was weighed down by a stronger pound as BOE kept interest rates unchanged at 0.75%, and raised its forecast for third quarter GDP growth, while news emerged on Britain and the EU making progress on the Irish border issue - a major hurdle in Brexit talks. In stock specific news: yesterday's gainers (Tobacco and Energy stocks) shed off some of their profits, retailers were red across the board, outweighing gains in banks and materials. In economic news, we have Governor Carney speaking at 10:00 GMT about the Monetary Policy and Interest rate decisions.
The FTSE 100 is still trading in a consolidation range (between our set support and resistance levels) while printing higher lows which translates in a higher probability of price breaching the consolidation area to the upside, as RSI heads north of 50. Resistance levels and 200 SMA to be used as targets as long as price respects our short term uptrend. Further confirmation on 4H close above 7308.9.
Support: 7268.4 7224.1
Resistance: 7309.5 7335.9