FTSE inched 0.16% higher on Friday amidst progress on global trade front. President Trump reportedly intends to delay China tariffs as the two nations continue negotiations to reach a deal. On the domestic front, Brexit turmoil heightens as PM Theresa May’s plan to postpone this week’s meaningful vote on the divorce deal is faced with an infuriated parliament. While trade progress inspires optimism, uncertainty over the state of the global economy in the face of Europe’s weak economic numbers and Brexit’s indefinite course remains a headwind to the Footsie’s rally.
The FTSE ended at 7178 on Friday as the rally starts to lose traction and price consolidates. The price failed to extend past the resistance at 7250 and has since been inching lower with the support at 7150 separating the Footsie from further downside pressure towards the 7060 level. Should the 7150 level hold, The footsie should trade through the 20-period MA before seeing a retest of the resistance around 7250.
Support: 7150/ 7060
Resistance: 7190/ 7250