The Footsie edged 0.45% lower to close at 7291 as Sino-US trade tensions redevelop with the reported possibility of lingering tariffs on China. Highlighting the day is the BOE policy meeting of which markets’ are expecting no change in interest rates given Brexit uncertainty and the pending outcome of PM Theresa May’s request of the EU to shortly delay Brexit. The effects of today’s policy outcome and Brexit developments on the domestic currency is expected to drive the internationally exposed footsie index which normally benefits from a lower pound. On the data front, today the UK publishes retail sales data for February.
The FTSE index took a pause on its rally as it failed to trade through the resistance at 7350 on Wednesday and retreated lower as the RSI exited the overbought region. Overcoming 7350 would pave the way for further gains with the next target resistance at 7470. Alternately, a decline below the support at 7260 would suggest short-term weakness and a move towards the support around 7220.
Support: 7260/ 7220
Resistance: 7350/ 7470