FTSE 100 started lower the session after hitting last Friday fresh six-month highs. Investors the last two weeks have increased bets that the Bank of England will proceed with a 25 basis point cut in the January policy meeting. Weaker macro data and dovish comments from MPC members point to that direction. The release of weaker UK retail sales last week add to the dovish sentiment.
Wall Street last Friday registered another record high supported by the signing of phase one trade deal between China and the USA. Today US markets will be closed for the Martin Luther King Day.
FTSE 100 is 0.26% lower at 7,654 as the bullish momentum is intact despite today’s pullback.
On the downside, immediate support for the FTSE 100 index stands at 7,654 the daily low. If the index settles today below that level the next support zone will be met at 7,610 the low from January 17th. Next support level stands at 7524 the low from January 8th. If FTSE 100 index breaks below the 50-day moving average at 7,437 will cancel the bullish momentum.
On the other hand, initial resistance for FTSE 100 will be met at 7,682 the daily top. A break above might test the next resistance at 7689 the high from January 17th session. The high from July 30th 2019 at 7,727 might provide more offers. We have to go back to August 9 2018 top to find the next resistance level at 7,780.