London’s blue chip index fell 1.11% on Thursday. The tumble came as the BOE kept interest rates the same however downgraded growth forecast by 0.5% for 2019, highlighting concerns over Britain’s economy amidst Brexit’s heightened uncertainties. In addition, The European commission slashed their forecasted growth, raising concerns over a weaker global economy. With a pessimistic outlook on the global economy and a lack of progress on Brexit, not much can hold up the FTSE index except a change of sentiment driven by positive news.
The UK index puts a pause to its uptrend as bullish momentum and price retreats towards the 20-period MA. A trade through the 20-period MA could indicate more than a minor pullback and drag price to test the support at 7000. On the other hand, a sustained move above the 7050 level, will keep price ranging before retesting the resistance around 7180.
Support: 7050/ 7000
Resistance: 7180/ 7295