The FTSE 100 is seen opening higher on Wednesday, tracking gains from US and Asian markets, while Standard Chartered reported a rise in Q3 earnings. The FTSE 100-listed bank reported a pretax profit of USD1.06 billion, up 37% from the year before. In early economic news, UK shop prices declined in October following two months of mild inflation, data from the British Retail Consortium showed. Also, consumer confidence in the UK fell in October despite accelerating wage growth. Nothing on the economic calendar scheduled for today suggesting a light trading day ahead.
After gaping up yesterday on strong buying interest, the UK index managed to break through key resistance levels at 7050. The resistance is now acting as support, and we are once again trading above the 200-period MA on the hourly chart, therefore on the short-term the trend is bullish and more upside is expected. However, prices are close to another resistance level at 7114 and the RSI suggests overbought conditions, which might attract some sellers.
Support: 7050 / 6960
Resistance: 7114 / 7188