The FTSE ended virtually flat as it declined by 0.07% to end at 7348 on Friday. In the UK, the prospect of PM Theresa May’s departure alongside a breakdown in B cross-party talks raised concerns over the course of Brexit. In addition, US-China trade relations are further strained as China would reportedly stall trade talks with the US in the wake of the recent ban on Chinese telecom Huawei. The Footsie that would have otherwise maintained losses during the day amidst the ongoing global trade developments, managed to make a slight recovery attributed to a sharp decline in the pound. A weak pound should provide support for the FTSE by limiting the extent of losses while trade headlines will continue to impact price action and sentiment throughout the day.
The FTSE failed to edge above the 20-period MA Around 7355 and ended at 7348 on Friday. However the Index spent last week staging a recovery from its low at 7140 suggesting that a new uptrend is in formation. Look for a sustained move above 7355 alongside a break through 7370 to target higher resistance levels at 7400 and 7470. Failure to climb above 7370 should leave price ranging above 7320 with immediate support found at 7280.
Support: 7320/ 7280
Resistance: 7370/ 7400