The FTSE ended higher on Tuesday as markets interpret the latest news of the US’s easing restrictions on Chinese telecom Huawei as a semblance of easing tensions between the two nations. In the UK, PM Theresa May proposes an inconclusive Brexit plan which helped bolster the pound during the day and limit gains on the FTSE. Today, the UK publishes inflation reports which should have minor influence on the FTSE as global markets will be awaiting further US-China trade developments to drive price action and dictate sentiment throughout the day.
The FTSE ended 0.25% higher at 7328 on Tuesday after it had made an early attempt to overcome the resistance at 7370. The price has managed to hold above the 20-period MA reinforcing its upside moves and making a break through 7370 increasingly likely. A move above this level clears the path towards higher resistance at 7400 and 7470, while a sustained move above 7320 maintains buying pressure.
Support: 7320/ 7270
Resistance: 7370/ 7420