The FTSE traded 0.68% higher on Tuesday as Brexit uncertainty weakened the pound and in-turn boosted London’s blue-chip index. PM Boris Johnson failed to get his schedule for his Brexit deal with the EU approved by Parliament subsequently delaying the process. While a no deal scenario is unlikely, an extension for the deadline has been requested and whether PM Johnson’s deal will be the final outcome of Brexit has yet to be concluded. A weak pound should keep the FTSE afloat however further developments on Brexit will test risk appetite. Today there are no major economic releases to influence direction on the FTSE though Wall Street may provide directional cues as major US corporations publish earnings reports.
The FTSE gained 48 points to end at 7212 on Tuesday. The price managed to extend its rebound since recording a low of 7139 on Monday. The price would have to trade above the high at 7237 in order to negate the sequence of lower highs while overcoming resistance at 7250 would signal a bullish continuation. Today, look to the 20-period MA near 7190 to determine direction on the FTSE as a decline below this level would lead the FTSE back down to meet the lower level of support at 7150.
Resistance: 7237 /7250