The FTSE ended 0.78% higher on Thursday as sterling declines due to Brexit uncertainty and higher oil prices aided the lift on London’s blue chip index while fears over US-China trade tensions subsided for the day. However, the US’s recent ban on Chinese telecom Huawei jeopardizes the potential of a trade deal and should keep markets under pressure. Today, the focus will shift back to US-China trade headlines to direct direction, while a weaker pound may keep the FTSE afloat.
The FTSE extended gains on Thursday as it approached the 20-period MA around 7350 before ending at 7353. A sustained move above the resistance zone of 7350/7370 would restore the bullish outlook on the FTSE and bring into view resistance levels at 7470 and 7530. The one hour RSI reading shows that price reached the overbought territory which may be trigger a lower move towards support at 7280 should bullish momentum stall. Alternately, a sustained move above 7300 indicates the presence of buying pressure and targets the 7400 level should price break above 7350.
Support: 7300/ 7240
Resistance: 7370/ 7400