The FTSE Index posted strong gains as it rose almost 1% to close at 7299 on Monday. The surge in price was aided by a drop in the pound as PM Theresa May was denied another parliamentary vote on her divorce deal unless influential changes were made. Thus, Brexit uncertainty persists and the question of whether the EU will approve an extension of the Brexit deadline highlights the week alongside the BOE’s policy meeting on Thursday.
The Footsie index broke through the 200 day MA and the high at 7260 to resume its uptrend and extended gains towards the 7300 level. While the RSI reading sits at the overbought threshold, bullish momentum may drive the price higher to target resistance at 7350 before a short-term pullback can be seen whilst holding above the 7200 level.
Support: 7240/ 7200
Resistance: 7350/ 7470