The FTSE declined by 0.3% as the sterling strengthens at the back of positive Brexit headlines. Members of Internationally exposed index gain its bulk of revenues from abroad and relies on a weaker pound for its benefit. Moreover, China’s disappointing PMI data barely resided in expansionary territory thereby denting sentiment and weighing on the FTSE’S mining sector. In terms of data, the UK releases Manufacturing PMI data today and continued strength in the pound should limit gains on the FTSE. In addition, The Fed’s monetary policy meeting will garner attention and may impact price action later in the day.
The FTSE ended lower on Tuesday at 7418 as the bulls struggle to edge above the 20-period MA. It remains that a move above 7470 is required to restore the bullish view and target the high at 7530, while a decline below 7400 will drive the index towards the lower support zone of 7370/7380. Failure to find support at the rising trend line from December’s low will signal a bearish outlook on the FTSE.
Support: 7400/ 7370
Resistance: 7440/ 7470