FTSE traded 0.12% higher on Monday as it outperformed European Indices amid escalating tensions between the US and Iran following President Trump’s newly imposed sanctions. Oil majors helped keep the FTSE afloat as oil prices remain high due to Middle Eastern tensions which gives markets another reason to tread cautiously. The FTSE should remain under pressure as global markets await US-China trade developments ahead of the G-20 summit this weekend.
The FTSE managed to find support above the 7370 level as it edged above the 7400 level and ended at 7416. Meanwhile price can be seen drifting lower since reaching the key resistance of 7470 last week, suggesting that further weakness may be in store for the FTSE. Failure to sustain price action above the 7420 level would narrow chances of re-testing the resistance at 7470, while a decline below 7370 would drive the FTSE towards lower support levels.