The FTSE traded 0.44% lower on Friday as a weak Chinese GDP figure raises global growth concerns while a higher pound limits the index’s upside potential. While market participants were hoping for a Brexit breakthrough, the UK parliament disappointed as it failed to vote over the weekend on the UK-EU Brexit deal reached. It was reported that the British government requested an extension to the October 31st deadline leaving the Brexit situation as well as market participants in limbo. Markets attention will be tuned to Brexit headlines and the FTSE’s direction should remain uncertain as is the Brexit outcome.
The FTSE closed 31 points lower at 7150 on Friday. The price traded below the 20-period MA yet held above the support at 7150. Look to a sustained decline below the 7150 level to target the lower support at 7130 followed by 7100. Otherwise holding above the 7150 level would maintain range-bound price action with a move above 7190 required to indicate buying pressure and target the resistance at 7220.
Resistance: 7190 /7220