The FTSE100 is set to open lower today, following risk-off trade in Asia overnight, with the focus on Brexit developments in the UK as sterling tumbled to a two-and-a-half week low overnight. The FTSE 100 index closed down 7 points at 7,043 on Monday. Moreover today, Prime Minister Theresa May will brief the Cabinet on the progress of Brexit negotiations after last week's Brussels summit failed to achieve the hoped-for breakthrough. Looking ahead, we have the UK CBI Industrial Trends Survey figures at 1100 GMT.
Technically, the index is now approaching key support level at 6970 as the bears took control yesterday ending the day below in the red. The RSI is below 20 signaling oversold conditions, therefore a bounce from here is expected targeting the 200-period MA. Alternatively, selling might accelerate should prices move below the key technical support levels where further sell stops could get triggered.
Support: 6970 6925
Resistance: 7070 7185