The FTSE index closed 0.8% higher at 7190. On the economic front, UK inflation data declined below BOE’s target of 2% for the first time in two years leading to a decline in the sterling and in turn aiding to lift the Footsie. Brexit developments highlight the day as parliament is due to debate PM Theresa May’s Brexit plan and decide on a deal or further delay. Meanwhile, high level trade discussions between the US and China begin today and the prospect of a breakthrough continues to dominate market sentiment.
The FTSE index gained enough ground to reach key resistance level of 7190 that has kept a lid on the index’s gains and outlook. A break through this level will signal the resumption of the uptrend, while failure to do so will keep price ranging above the 20-period MA. Moreover, a break of the support line on the RSI will be indicative of a bearish shift in price action that should take the index to lower levels of support.
Support: 7140/ 7070
Resistance: 7220/ 7320