The FTSE ended lower at 7459 ahead of the Easter holiday and resumes trading today. Given that Brexit’s recent extension from the EU saw little market reaction in the Footsie as well as the sterling, it seems markets have price in the negative impacts of Brexit. Thus, an improved global outlook, supported by China’s recently improved GDP data holds a stronger influence over the FTSE which earns a bulk of its revenues abroad while the lack of Brexit developments leaves room for further gains.
The FTSE has struggled last week to overcome resistance at 7470 as it holds shortly above the trend line resistance from May. Price is currently sitting in a pivotal spot, and a breakout above 7470 would be needed to signal bullish continuation and target the resistance at 7560. Meanwhile holding above the 7440 level maintains the bullish bias while a decline below this level would target the 7420 level.
Support: 7440/ 7420
Resistance: 7490/ 7560