The Footsie Index declined by 0.7% on Friday, a day after ECB’s dovish announcements and downgraded growth forecast sparked global growth concerns and weighed on investors’ sentiment. In domestic news, Brexit headlines will dominate the week as the UK parliament is due to vote on PM Theresa May’s Brexit deal and pressure on the pound is likely to keep the FTSE afloat ahead of tomorrow’s vote.
The FTSE ended at 7104 on Friday as it continued to drift lower after failing to break through resistance at 7220 earlier last week. However, price has been supported by the 100-period MA, and has yet to break through it to increase the chances of breaking the trend-line support and reinforce the bearish outlook. Holding below the 7150 level should keep the price ranging before deciding on further direction.
Support: 7060/ 7000
Resistance: 7150/ 7220