European bourses are heading towards a positive open, with the FTSE leading the way. Weakness in the pound overnight following Theresa May's appearance at the EU Leaders Summit, combined with a retreat in oil prices are underpinning the FTSE. The blue chip index closed down 0.1%, or 5 points, at 7,054 on Wednesday as EU leaders' meeting in Brussels decided that too little progress had been made in Brexit negotiations to justify a November summit aimed at inking a divorce deal. In the UK corporate calendar there are Q3 results from Unilever and Domino's Pizza Group. In the economic events calendar there is the UK retail sales figure at 0930 GMT.
Technically speaking, the FTSE does not show any clear trend in the medium or long term. However over the short term, the RSI looks mixed to bearish and the trend is clearly bearish, signaling a slight downward move towards the support at 6970. Moreover on a 1H chart, the 200-period SMA is acting as a dynamic resistance level and most likely traders will sell if price rises and touches this moving average.
Support: 6970 6925
Resistance: 7070 7185