The Footsie traded sideways on Monday before closing slightly higher at 7183. News that President Trump postponed the deadline on China tariffs buoyed global sentiment, however a steady pound has kept a lid on the FTSE’s gains and is likely to direct price action in today’s session. It’s a busy day on the political and economic front for the UK, as an inflation report hearing will be released and PM Theresa May updates a divisive Parliament on her Brexit plan and whether there will be an extension to the date of the UK withdrawal from the EU ahead of a meaningful vote set on March 12.
Though the overall outlook on the FTSE remains positive, short-term price action is neutral and consolidating above the 7150 level separating the index from downside pressure towards the support at 7060. Should price action sustain above 7150 and trade through the 20-period MA at 7200, it could see a retest of the resistance at 7250.
Support: 7150/ 7060
Resistance: 7190/ 7250