FTSE 100 started in the red the trading session but managed to turn positive as traders await the earnings release from major U.S. banks. The UK PM Boris Johnson said that it is very likely we get a comprehensive trade deal with EU by year-end. Investors also keep an eye on the signing of the phase one deal between the U.S. and China on January 15th and the details about the second phase of the negotiations. In a positive move the U.S. removed China from the currency manipulator list ahead of the phase one deal.
FTSE helped by NMC Health Plc +4.10%, Antofagasta Holdings +2.00%, Centrica plc +1.87% and Glencore plc +1.49%. On the other hand FTSE dragged down by Pearson plc -2.37%, Mondi Plc -1.52%, Hikma Pharmaceuticals -0.83% and Johnson Matthey Plc -0.77%.
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FTSE 100 Levels to Watch
FTSE 100 is 0.26% higher at 7,637 close the five-month highs, as the pressure on GBPUSD continues. FTSE 100 momentum is positive as we approach the Brexit deadline on January 31st.
On the upside, initial resistance for the index will be met at 7,642 the daily top. If the index breaks above then the next target will be the December 27th high at 7,668. The next strong supply zone is at 7,727 the high from July 30th 2019.
On the downside, immediate support for the FTSE 100 stands at 7,588 the intra-daily low. In case the index breaks below the intraday low next level to watch is at 7,524 the low from January 8th. If the index pierces the 50-day moving average at 7,408 would cancel the bullish momentum and a move to lower levels will be posible.