FTSE 100 was getting bombarded yesterday with mixed news, being able to maintain a bearish close below 7300. On one hand, bank stocks helped push the index higher as concerns over Italy's budget preparation were alleviated. On another hand, the Pound surged after EU's Brexit negotiator, Mr. Michel Barnier, announced his optimism on reaching a Brexit deal within 6 to 8 weeks if negotiators were realistic in their demands. In economic data, the UK economy grew 0.3% month-on-month in July, as the gross domestic product (GDP) exceeded the 0.2% expected growth figure and last month’s actual 0.1%. Busy day ahead as investors wait for the release of employment/unemployment rates, weekly earnings, and jobless claims figures out of the UK.
Technically speaking, the index is still pushing down on the lower band of the Bollinger Bands with signs of strong bearish momentum on the Daily timeframe. Short bias remains as long as price is still respecting our downward trend parallel channel (and below 7300), to be confirmed with the break of the two intraday up-trends.
Support: 7268.4 7196.6
Resistance: 7305.6 7335.9