The FTSE reversed gains from the previous session as it declined by 0.55% on Wednesday. Fears of escalating US-China trade tensions turned sentiment negative during the day as news report that the two nations have arrived at a halt due to the restrictions on Chinese telecom Huawei. Today, the UK publishes inflation data which could turn the pound lower if it misses expectations. Moreover, a decline in oil prices has weighed on oil majors in the FTSE and could limit any upside support the weaker pound may have otherwise provided.
The FTSE lost 41 points to end at 7535 on Wednesday as price respected the resistance at 7590 and dipped lower. The decline is in an indication that the bullish moves may have been a short-term reversal leading to the formation of a lower high. So long as price holds above the support of 7500 coinciding with the 20-day MA, the FTSE should eventually turn higher. Otherwise, a decline below 7500 would indicate further weakness and lead to the support at 7470 followed by 7450. Look to the 20-period MA around 7535 to indicate near-term direction on the day.