FTSE 100 is expected to open higher this morning even though PM Theresa May faced a tough battle in the Commons yesterday. Resignations from key ministers are casting doubt on whether she will be able to get her Brexit deal through the Parliament and a prospect of snap elections is clouding the UK index's outlook. Having said that, the drop in the Pound yesterday is helping UK stocks and the FTSE is expected to open close to 1% higher, whether these initial gains will hold remains to be seen.
Technically, the FTSE 100 has formed a higher low on both the short-term and medium-term charts suggesting that a break higher is the next step. However, the bearish fundamental outlook and the strong 7,200 points' resistance are not allowing investors to keep building long positions on British stocks. For the day ahead, a break above the 7,120 points' intra-day resistance may allow the UK index to travel higher with a view to test the 7,200 barrier.
Support: 6980 / 6850
Resistance: 7115 / 7200