The FTSE is seen opening marginally higher today, shrugging off steep losses in the US overnight, ahead of UK unemployment data at 0930 GMT. The unemployment rate is expected to remain steady at 4.0%. The blue chip index closed down 52 points lower at 7,053 Monday. Concerns about the outlook for global economic growth and a continued increase in interest rates contributed to the sell-off yesterday in London but also on Wall Street. In domestic political news, Theresa May has warned Brussels she will not sign up to a Brexit agreement "at any cost", amid signs of further rebellion among her senior ministers. Her comments might put further pressure on the Footsie today.
The Footsie was unable to hold its gains as the bears took control yesterday. As predicted in our previous analysis, the selloff started as soon as prices hit the 200-period moving average causing an avalanche of selling all the way to key technical support levels at 7040. A last minute rebound ended the day at 7070. Looking ahead, a rally back to the 200-period MA is a most likely scenario today, however should prices move below the nearby swing low at 7027 further sell stops could get triggered causing further selling.
Support: 7115 / 7040
Resistance: 7185 / 7225