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FTSE 100 Starts Higher On Weaker Pound

FTSE 100 Chart

FTSE 100 started the week higher as the pound is under pressure breaking below the 1.30 mark. Traders await the signing ceremony of the phase one deal between the U.S. and China on January 15th and for more details about the deal. President Trump said he might wait until after the presidential election to finalise the second part of the US-China trade deal. Geopolitical tensions between USA and Iran ease helping risky assets around the globe.

On Friday, Wall Street indices ended lower after the NFP report disappointed investors. The non-farm payrolls increased by 145k in December, below the expectations of 166k. Wages data also disappointed, growing just 2.9% on a yearly basis.

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FTSE 100 Technical Outlook

FTSE 100 is 0.44% higher at 7,620 approaching the five-month highs. The index is on a bullish path helped by the return in risk appetite and lower pound.

On the upside, first resistance for FTSE 100 stands at 7,633 the daily high. Next resistance for the index will be met at 7,668 the high from December 27th. More offers will emerge at 7,720 the high from July 30th.

On the flip side, first support for the FTSE 100 index stands at 7,587 the daily low. The next support level will be met at 7,524 the low from January 8th. Bears might take the upper hand if the slips below the 50-day moving average at 7,408.