London’s blue chip index was weighed down by downbeat updates from major UK corporations while the pound’s strength has placed an additional lid on the Footsie’s price. US-China trade talks continue to dominate market sentiment whilst remaining a matter of uncertainty alongside the course of Brexit. Moreover, Disappointing data from the Eurozone highlighted concerns over the region’s slowdown and will draw investors’ attention to remarks on monetary policy from ECB President Draghi’s speech today.
The Footsie Index declined by 0.85% to close at 7167. Bullish momentum has weakened as price failed to move past its high at 7260 and moved below the 7160 level suggesting a likely retracement towards support at 7050. Moreover, The RSI reading has entered negative territory while price is bounded by the Bollinger bands awaiting a breakout for further direction.
Support: 7060/ 7000
Resistance: 7190/ 7260