The Footsie loses 0.6% in yesterday’s session amidst fears of a deteriorating global economy. While Brexit uncertainties persist, China’s weakening economic landscape and trade tensions with the US add to the pessimistic global outlook that has left the Footsie sectors reliant on the Chinese economy intimidated. Worthy to note that today Fed Chairman Powell speaks and could take a toll on the index's outlook starting next week.
The Footsie index sits in the resistance zone held between the 20 and 50 period moving averages where it has continued to consolidate. The 6762/6775 zone coinciding with the 50-period MA remains a testing level to whether the price action will move up or continue on its bearish trend. Meanwhile, the RSI hovers around the 50 level and a doji candle formation suggests the persistence of indecision in the apparent downtrend.
Support: 6670 / 6595
Resistance: 6775/ 6845