The FTSE traded 0.33% higher on Tuesday as positive trade headlines provided support. President Trump announced that the imposing of proposed tariffs on particular Chinese goods would be delayed. In terms of data, The UK showed an increase in employment and wages however an uptick in the unemployment rate. The employment data will be followed by inflation figures from the UK today which should have a muted impact as geopolitics and trade headlines hold a stronger influence. It is worth noting, disappointing industrial production data out of China may limit upside potential on the FTSE today.
The FTSE gained 24 points to end at 7250 on Tuesday. The price initially dipped below the support zone of 7200/7190 near the 200-day MA and reached the 7170 level before edging back up. Today, look for a sustained move above the 20-period MA at 7230 to indicate buying pressure with a trade above yesterday’s high at 7280 required to enable gains towards the resistance zone of 7300/7315. Alternately, a decline below the 7230 level would lead to a re-test of the support near the 200-day MA.