The Footsie edged 0.44% higher on Tuesday amidst mixed economic data on UK employment and a weaker pound. Out of the UK, China’s GDP figure and industrial production point to improving economic conditions which should provide support for global equities. However, a lack of positive developments on the global trade front and Brexit leaves the FTSE struggling to break through the resistance at 7470 yet the bullish bias still holds.
The FTSE managed to trade slightly above the resistance at 7470 before holding below that level to end at 7469. In addition the price broke through the trend line resistance from May which should provide near-term support as the price is looking to drift higher. It is worthy to note that the reversal candlestick has formed on the 4H chart which may suggest a move to the downside should the 20-period MA fail as support and the RSI reading fall below the midline. Price would have to hold above the 7470 level to indicate further advances towards resistance at 7560.
Support: 7438/ 7400
Resistance: 7470/ 7550