Friday, June 28, 2019

FTSE100 - 28 June 2019

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Fundamental Highlights

The FTSE continued to trade sideways on Thursday and ended 0.19% lower as markets await the outcome of the G-20 summit to determine direction on the FTSE. We can expect the FTSE to remain indecisive unless trade headlines lead to a change in sentiment over the prospects of the US-China meeting. In terms of data, the UK publishes GDP data which is expected to show a growth of 0.5% in the first quarter. We will look to the data’s impact on the sterling to possibly influence price action on the FTSE which benefits from a weaker currency whilst cautiously waiting for further trade developments.

Technical Analysis

The FTSE traded sideways on Thursday as it found support once again at 7370 before ending at 7402. Chances of re-testing the resistance level of 7470 would increase with a sustained move above 7420 and overcoming the trend line resistance off of the series of lower intraday highs. Meanwhile, a sustained move below 7400 would indicate selling pressure with a decline below the holding support at 7370 required to lead the index towards the 7320 level.

Support: 7400/7370
Resistance: 7440/7470

CHART (H4)
FTSE100