The FTSE barely held up in positive territory as it gained 6 points on Wednesday’s session. The pound continued to plummet and provided support for the Footsie throughout the day while familiar US-China headlines provide no clear direction. Markets await a possible retaliation from China against the US’s ban on Huawei and a confirmation of resumed trade negotiations to determine sentiment and direction. Moreover, a weak pound due to Brexit concerns should keep the FTSE afloat while services and manufacturing PMI reports out of the Eurozone today may impact price action.
The FTSE ended virtually flat on Wednesday as it ended 0.07% higher at 7334. The price made another failed attempt at overcoming the resistance at 7370 which has held back further gains towards higher resistance levels. Moreover, The 20-day MA crossed below the 50-day MA for the first time since the initiation of the FTSE’s uptrend in December, indicating a potential shift to the downside. A sustained move below 7300 signals selling pressure and would target the support at 7270.
Support: 7270/ 7240
Resistance: 7370/ 7420