FTSE 100 trades 0.20% lower at 7,197.53 as the initial Brexit optimism fades away and Pound Sterling trades at five-month highs. Equity investors are cautious trying to digest the confusing headlines from Brexit front and US-China trade agreement reached last week Friday. The UK Consumer Price Index (year over year) came in at 1.7% slightly below forecasts of 1.8% in September. The United Kingdom Retail Price Index (month over month) came in at -0.2% below market consensus of -0.1% in September.
In its financial policy committee meeting minutes released last week, the Bank of England (BOE) said that UK financial system is prepeared for Brexit. Brexit uncertainties weighing on UK economy and US-China trade tensions pose biggest near-term risk to global economy.
Download our FTSE 100 Q4 Outlook Today!
FTSE 100 Technical Analysis
On the technical side, FTSE 100 canceled the recent rebound from seven-week lows amid Brexit headlines and high volatility in GBPUSD. The index formed a death cross the last four trading sessions as the 50-day moving average crossed below the 200-day moving average giving a bearish signal for FTSE. On the downside, immediate support stands at 7,182 today’s low, while a break below will open the way for a test of 7,027 the August low. Below this level, the next support comes in at the lows seen on February 2019,at 6,966. On the upside the index facing the resistance at 7,217 daily high and then at 7.260 the 200-day moving average, a close above could open the way for a move up to 7,336 the 100-day moving average.