The FTSE index extended gains on Tuesday as it rose 0.34% and ended at 7324 despite persisting uncertainty on the Brexit front. PM Theresa May will meet with EU officials tomorrow seeking to request a delay on the UK’s withdrawal date, with which an approval would potentially lead to another parliamentary vote on Brexit. Moreover, the prospects of a rate hike from the BOE’s policy meeting tomorrow is subject to Brexit developments and remains unlikely given Brexit’s indefinite course.
The Footsie index continued to move higher as it reached the resistance at 7350 before ending at 7324 on Tuesday. Bullish momentum has propelled the index to the 7350 level with an RSI reading maintained in overbought territory, from which an exit would be required to see a potential pullback holding above the 20-period MA around 7220. While the FTSE is an uptrend with immediate support at the 7260 level, a breach of the 7350 level would be required to target the next resistance level at 7470.
Support: 7260/ 7220
Resistance: 7350/ 7470