Uncertainty on the UK’s next steps towards the divorce deal weighed on the pound and as a result drove the FTSE index higher to close at 7234 on Thursday. The lack of progress on Brexit continues to cloud market sentiment and today UK lawmakers will vote on PM May’s withdrawal agreement in hopes of concluding the prolonged disorder. On the data front, UK’s 4th quarter GDP data is due and a sustained weakness in the pound is likely to keep the FTSE afloat. Moreover, US-China trade negotiations continue today and any positive steps may uplift market sentiment.
The Footsie index managed to overcome the resistance at 7220 while the RSI reading broke above the midline to enter positive territory. Holding above the 7220 level would indicate the presence of buyers, however clearing the resistance at 7260 is required to suggest a higher move towards the 7290 level. Failure to sustain price action above 7220 would lead the index to lower support levels.
Support: 7220/ 7180
Resistance: 7290/ 7350