The FTSE traded 0.17% lower on Tuesday as European Indices were pressured by a corporate profit warning from German blue-chip BASF. The warning partially attributed to the US-China trade dispute raised global growth concerns and limited support from a declining pound. Today the UK publishes industrial production, manufacturing and GDP data, and any signs of improvement is likely to provide the sterling with support and limit the upside on the FTSE. However, of much greater impact on the FTSE’s price action today will rely on Fed Chairman Powell’s monetary policy statement which will guide markets expectations of an imminent rate cut.
The FTSE ended 12 points lower at 7536 as the price edged below the 20-period MA whilst holding above the support around 7520. The 20-period MA currently shy of the resistance at 7570 will act as dynamic resistance on the FTSE and should determine whether the Index can go any higher and resume its bullish trend. Meanwhile a break below 7520 would indicate selling pressure and drive the FTSE towards the lower support at 7495 followed by 7470.