Despite the persisting uncertainties related to the UK’s withdrawal from the EU, the pound continued to gain ground and weighed on the Footsie that ended 0.6% lower on Wednesday. While a steady sterling keeps a lid on the FTSE’s gains, Investors await Brexit clarity ahead of Parliaments meaningful vote on PM Theresa May’s deal on March 12 and remain attentive to US-China trade headlines to impact market sentiment.
The Footsie continued its streak of losses and ended lower at 7107 on Wednesday. A bearish outlook is at play as the shorter 20-period MA is looking to cross below the longer 50-period MA while the daily RSI reading sits slightly above the 50-midline separating the index from negative territory. Meanwhile price would need to break below the 7060 level to reinforce bearish pressure and suggest a move towards the trend line support at 7000.
Support: 7060/ 7000
Resistance: 7180/ 7260