The FTSE traded 0.08% lower on Wednesday as it was left uninspired by Fed Chairman Powell’s dovish stance as he underlined a worsening global economic backdrop. In terms of data, UK’s GDP figure matched expectations at 0.3% while industrial production and manufacturing data missed estimates. The pound rose at the back of mixed data and weakness in the greenback however failed to influence the FTSE. Today Chairman Powell delivers his 2nd day of the testimony in which he is unlikely to offer a different outlook to influence sentiment.
The FTSE continued to trade within the range bounded by the 20-period MA around 7570 and the support of 7520 before ending 6 points lower at 7530. The uptrend structure remains intact however, the depth of the pullback remains in question with price hovering above the 7520 level. Look for a decline below 7520 to extend the pullback to lower levels of support at 7490 followed by 7470. Alternately, a move above 7570 would suggest that price would re-test the resistance at 7600 and 7620.