The FTSE traded 0.53% higher as oil majors rose at the back of higher oil prices due to rising tensions in US-Iran relations. In the UK, the BOE’s policy meeting expectedly left rates unchanged and cut its growth forecasts but did not provide an indication of following global central banks’ shift towards easier monetary policy. However, prospects of a rate cut from the FED and a dovish ECB remains sufficient in buoying market sentiment and enabling gains in the FTSE. Today, manufacturing PMI figures out of the Eurozone and the US should reflect manufacturing conditions across the globe and may impact price action on the FTSE.
The FTSE managed to find support at 7400 as it ended 20 points higher at 7424 on Thursday. The price would have to continue holding above the 7400 level to indicate buying pressure and enable another attempt at breaking the resistance of 7470 which would clear the path for further advances. Alternately, a sustained move below 7400 would target the support at 7370 followed by 7345. The bullish trend remains intact so long as price holds above the previous low at 7315, while a move above 7470 signals a bullish continuation.