Tuesday’s upbeat UK data boosted the sterling and weighed on the internationally exposed Footsie index as it retreated by 1%. While the data uplifted sentiment on Britain’s economic performance, uncertainty over Brexit’s progression persist. Moreover, a series of warnings from China anchored concerns over the nation’s economic downturn and trade relations with the US, which may negatively impact global outlook and in turn global markets.
The FTSE index is ranging below 6905 and is looking to breach support at 6845 to target the lower Bollinger band at 6790 while a continuous move below the 50 midline on the RSI should support the downside move. As long as price remains within the bounds of the band and below resistance at 7000, the bearish outlook on the FTSE still holds.
Support: 6800/ 6720
Resistance: 6940/ 7000