The FTSE fell 0.4% yesterday, a decline that can be attributed to a surging pound and a large slump in the UK’s Industrial orders figure that dampens business confidence whilst the nation’s manner of withdrawal from the EU remains a point of concern. Moreover, the pessimistic global outlook on global growth including Brexit-related uncertainties and an unresolved trade war continues to weigh on the FTSE. On the economic front, the ECB is set to announce its interest rate decision, and a followed conference meeting will be in the spotlight as investors’ seek clues on an economic stance that may impact the market.
The FTSE met but failed to move past the resistance zone of 6980/7000 and continues to retreat downward looking to meet the support zone at 6790/6770. A break below this zone would indicate selling pressure and push price action towards a lower level at 6690 that will further determine bearish sentiment on the index.
Support: 6775/ 6690
Resistance: 6940/ 7000