Stock prices in London are opening flat today after losses in US markets and mixed trading in Asia. UK Prime Minister May is braced for a furious backlash from her own party as she presents her deal to the Commons. May cleared the first hurdle when Cabinet ministers approved the draft terms of her agreement with Brussels yesterday, but now faces a battle to get it through Parliament as some MPs accuse her of breaking promises and leaving the UK at the mercy of Brussels. The economic events calendar has UK retail sales figures at 0930 GMT and US retail sales and import and export prices at 1330 GMT.
The Footsie is still trading below the 200-period moving average on a 4H chart and still looking bearish as we target the next support levels at 6970 and 6865. Although the the RSI looks bullish signaling a pullback to the resistance levels at 7115 in the next few hours. It is highly unlikely that we breach the 200-MA which has been acting as resistance since mid-October, unless there is an important surge in price caused by a major fundamental catalyst.
Support: 6970 / 6865
Resistance: 7115 / 7230