The FTSE traded 0.42% lower on Monday as a rise in the pound due to UK election headlines weighed on the internationally-exposed index. Moreover, trade uncertainty weakened market sentiment as a US-China phase one deal remains indefinite in the face of President Trump’s unwillingness to remove tariffs. In terms of data, UK’s 3rd quarter GDP showed a growth of 0.3% as opposed to a contraction in the previous quarter, while industrial and manufacturing data came in lower than expected. Today, the UK publishes employment data which will provide further insight into the British economy. Apart from the data, traders should look to UK election developments and trade headlines as President Trump is scheduled to speak today.
The FTSE closed 30 points lower at 7328 on Monday. The price dropped below the 50-period MA to the support level at 7260 before making a short rebound. Today, look to the 50-period MA near 7300 to determine direction on the FTSE as a sustained move above this level would lead it to resistance at 7350 near the 20-period MA. Breaking above the 20-period MA would be required to reaffirm the FTSE’s bullish outlook. The uptrend should remain intact unless we see a break below the 7260 support level .
Resistance: 7350 /7400