The FTSE traded 1.21% higher as China’s improved trade balance and exports data alongside the nation’s support for a stronger than expected yuan helped relieve global markets. Today, the UK publishes second quarter GDP data and while the most recent BOE meeting downgraded Britain’s growth forecast, a sharply lower than expected reading may weigh on the sterling and in turn keep the FTSE afloat. Apart from the data, sentiment towards the US-China trade dispute will remain a key driver of price action.
The FTSE added 87 points to end at 7285 on Thursday. The price held above the 7185 level near the 200-day MA and traded through the 7240 resistance level as the RSI reading exited the oversold territory. Today, look to the 7240 level to determine near-term direction for the FTSE. Given the index’s sharp sell-off, there is chance we see the FTSE extend its rebound above the 7280 level and towards the resistance zone of 7315/7330 near the 20-period MA followed by 7365. Failure to trade above 7280 should lead the FTSE lower with immediate support found at 7240 followed by 7185.