London’s blue chip index continues to weaken and ended 0.46% lower against a buoyed pound and a backdrop of geopolitical tensions in Asia. Moreover, unclear progression over US-China trade relations and Brexit combined with slower growth in Europe and China raises global growth concerns and keeps a lid on global equities as investor’s wait for positive clarity to extend the rally in the FTSE.
The FTSE index has continued to decline this week and ended at 7074 in yesterday’s session. The price fell below the support at 7060 during the day pointing to short-term weakness and downside pressure towards the 7000 level. Moreover, A break below psychological support at 7000 would be needed to negate the rising trend line support and reinforce the bearish outlook on the index.
Support: 7000/ 6910
Resistance: 7170/ 7260