The FTSE lost 42.8 points yesterday and closed at 7241.9 as U.S.- China trade talks took a negative turn with President Trump deciding to implement $200 Billion tariffs on Chinese goods ahead of scheduled negotiations. Moreover, the IMF warned that all “likely” Brexit outcomes will “entail costs for the U.K. economy", while PM May reinforced her stance by saying "It's Chequers or no deal". Meanwhile, the U.K. Chambers of Commerce downgraded its UK growth outlook, stating that Brexit uncertainty is hurting trade and investment. In economic news, we have no specific data coming up today that would directly impact the FTSE.
The FTSE retested and confirmed our 7309.5 resistance level and is trading in a consolidation area below 7,300. Price bounced off the rectangle formation target at 7,236 without closing below it, showing signs of gaining bullish momentum as RSI breaks north of 50 on hourly chart. Further confirmation on market direction should be taken upon price using our resistance level as support, or vice versa.
Support: 7268.4 7224.1
Resistance: 7309.5 7335.9