The FTSE declined by 0.53% as a rising pound dragged on the Index while negative corporate updates weighed on its constituents. Today the FTSE will likely respond to the FOMC meeting on late Wednesday where Chairman Powell delivered a dovish message and increased prospects of a rate cut. Later in the day market’s attention will shift to the Footsie’s domestic central bank as the BOE is set for a policy meeting where interest rates are likely to remain unchanged as Brexit uncertainty persists, while the bank’s outlook on monetary policy will be of interest. In terms of data, today the UK publishes retail sales data which is likely to influence the pound and in turn the FTSE.
The FTSE declined to end at 7403 on Wednesday as it dropped from its peak of 7470 in the previous session. The RSI reading confirmed the lower move as it failed to form a higher high and correspond with price action. Should price decline below yesterday’s close, the FTSE should find support at the 20-period MA around 7370/7380, followed by secondary support at 7345. Meanwhile, the bullish view persists and a sustained move above 7400 would be required to indicate a re-test of the resistance at 7470.