The FTSE posted sharp gains of 1.30% ahead of yesterday’s Brexit vote. The parliament suggested a series of amendments to the deal, on which MP’s voted and found common ground. Two proposals had gained support; renegotiation to the Irish backstop policy and ruling out the prospect of a chaotic no-deal Brexit. While PM Theresa May works on revising the supposedly nonnegotiable deal with the EU, investors will monitor the crucial trade talks between the US and China that begin later today.
The Footsie recently broke its recent wobbly uptrend whilst travelling below a downside resistance since last year. The near-term outlook has turned bearish as the price found key support at 6750 from which it reversed back up to the 20-period MA. Should the RSI reading remain below the 50-mid-line, price should retreat from the resistance at 6845 to retest support at 6750 before further declines can be made.
Support: 6750/ 6650
Resistance: 6845/ 6910