The FTSE traded 0.25% higher as the bulls feed off of hopes of a “phase one” US-China trade deal. Meanwhile, the UK’s services PMI came in at 50, the midline separating it from expansion territory. Though Britain’s economy struggles under the uncertainty of Brexit, its services PMI alongside the construction PMI improved in October. The FTSE will continue to take direction from trade sentiment while a lack of news flow regarding trade developments should see optimism gradually fade.
The FTSE edged 18 points higher to close at 7388 on Tuesday. The price reached an intra-day high of 7402 and has yet to show a sustained move above this level to target the resistance at 7440. A decline well below Monday’s closing price at 7369 would indicate selling pressure and lead the FTSE to the lower support at 7250 followed by the 20-period at 7322.
Resistance: 7402 /7440