FTSE closes higher but below 7475 resistance

The FTSE charged higher in early trade on Tuesday, boosted by a broad risk on sentiment across global markets and a weaker pound. 

Propping up the FTSE are financials and the large multinationals which earn substantial profits abroad and so benefit from the favourable exchange rate. 

This morning’s rally ran out of steam later in the session and the FTSE is coasted through the afternoon, following a mildly stronger open on Wall Street.

If the FTSE holds its nerve it could on track to hit a record high of 2019. However, the UK index needs to over come resistance at 7475, last week’s high a level that it has bounced off a couple of times. 

Investors are opting to hold fire below the key resistance of 7475 until China’s GDP is released overnight. This will provide a strong clue as to whether the global economy is stabilising or whether there is more bad news to come.



Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.