The Footsie index fell 0.91% on the back of disappointing Chinese trade data deepening concerns over a global economic slowdown while PM Theresa May voiced concerns over chaos in the UK in case of a deal rejection ahead of today’s Brexit vote. The fate of global businesses and trade relations rests on the progression of Brexit as it will draw out Britain’s economic landscape. Thus, investors will keenly watch how Brexit unfolds as sentiment on the Footsie index relies heavily on the outcome.
The FTSE responded to the bearish shooting star candlestick and tested support at 6850 alongside an RSI reading of 50. However price action is holding above the 50 period EMA acting as its dynamic support whilst it ranges below resistance of 6940. A break of either levels should determine the index’s direction ahead of today’s Brexit vote.
Support: 6850/ 6750
Resistance: 6940/ 7000