FTSE is struggling to break above two-day congestion despite today’s opening higher, as near-term technicals are weak and overall sentiment ahead of start of Brexit negotiations remains negative.
The index is down around 1.5% for the week until now, with negative near-term outlook also driven by strong pound.
Pullback from fresh record high at 7444 was so far contained by 55SMA, with subsequent consolidation being unable to extend recovery and generate bullish signal for now.
Near-term price action is moving within thick hourly cloud (spanned between 7256 and 7297) and so far holding well below pivotal barriers at 7297 (hourly cloud top) and 7310 (Fibo 38.2% of 7444/7228 pullback), break of which is needed to generate stronger bullish signal.
Long red weekly candle also weighs on the price and maintains downside pressure.
Bearish scenario requires break below 7228 (55SMA / near-term base) for confirmation and extension towards next strong supports at 7184 (Fibo 61.8% of 7024/7444) and 7169 (top of ascending daily cloud).
Res: 7283, 7897, 7310, 7324
Sup: 7259, 7228, 7184, 7169
