The Footsie Index ended 0.51% lower, dragged down by negative headlines from major UK corporations. Moreover, sterling weakness fails to buoy price action on the index which may take directional cues from Wall Street as today’s US Q1 GDP release may impact market sentiment.
The FTSE failed to rebound after Wednesday’s dip and extended losses to end at 7434 on Thursday. The price is currently hovering around the 20-period MA at 7400 which is likely to determine near-term direction. A move below 7400 may lead to a bearish development and drive price towards the support zone of 7370/7360 before the index can see a recovery as the overall trend remains up. Should the lower band around 7400 hold as support, the price is likely to drift higher with a move above 7470 required to indicate buying pressure.
Support: 7370/ 7350
Resistance: 7470/ 7530