London’s blue chip index fell by 0.45%, weighed by a boosted pound on the news of a potential delay in the UK’s withdrawal from the EU. PM Theresa May presented parliament with the option of delaying Brexit should they reject her divorce deal on March 12, leaving the possibility of a no deal Brexit less likely. While a higher sterling keeps a lid on the Footsie, investors remain attentive to US-China trade headlines to impact market sentiment.
The FTSE index continued to record a series of intraday lower lows as it retreated towards support at 7100 before closing at 7151. A move below yesterday’s low around 7100 would reinforce the bearish view and bring the support of 7060 into play, while the 7180 level at the 20-period MA acts as a barrier to the upside on the FTSE.
Support: 7060/ 7000
Resistance: 7180/ 7260