Though major US and European indices ended higher last week, London’s blue-chip index was an exception to the gains. Despite the persisting uncertainties related to Brexit, the pound continues to gain ground and weigh on the Footsie that fell 0.14% lower on Friday. Recent optimism surrounding the UK’s withdrawal from the EU has yet to be tested in tomorrow’s key parliamentary vote on Theresa May’s Brexit Plan B. While investors factor in slowing global growth concerns, speeches from the ECB and BOE will be in the spotlight today.
The Footise’s rally from the late December’s low has had its setbacks as it failed more than once to push past the resistance at 7000. Moreover, a potential lower low formation is in the picture should the index break below the support level at 6800. A sustained move below this level could crack the recent uptrend, however should price bounce off the support zone at 6790/6800, the price action will have to trade through the 20-period MA to signal a test of resistance zone at 6950 and keep it out of bearish territory.
Support: 6750/ 6680
Resistance: 6850/ 6945