The FTSE traded 0.60% higher on Tuesday led by positive earnings results out of high end UK retailer Burberry. Moreover, heightened uncertainty over UK’s political scene and the outcome of Brexit has overshadowed data pointing to growth in wages and further weighed on the pound which has benefited and supported London’s blue-chip index. Separately on trade news, President Trump reiterated reiterates tariff threats on China and casts doubt over trade talk progress which could weigh on market sentiment during the day. Today, the UK publishes inflation data which would determine whether the BOE would turn to a dovish stance and support UK equities.
The FTSE added 45 points to end at 7577 on Tuesday. The price reached an intraday high of 7590 which raises the chances of a trade through the resistance of 7600 to target the high at 7620. Failure to trade and hold above 7590 would suggest the higher moves may be a short-term bullish reversal with a decline below the 20-period MA around 7530 required to re-test the support at 7500.