FTSE reversing weekly 1% rise on Monday
- Ahead of the BoE this week, the U.K.’s FTSE 100 declined 0.8% to 6,790.16 after ending last week on a positive note, higher by 1%.
- GBP/USD softer as PM May gives a statement to House of Commons
However, investors are treading cautiously into the last full trading week of the year amid concerns over global growth, Brexit and higher rates. In fact, the FTSE is on course for its worst quarter since 2011.
Despite the Christmas shopping spree, shares of U.K. fashion retailers slid on the back of ASOS falling by 40% after the profit warning, helping send the shares of its rivals into the red. The company warned of difficult November trading and cut its full-year outlook.
For the week ahead, eyes will be on the BoE. However, following today's address by UK Prime Minister May in MPs about Brexit but is drifting lower as May reiterated her opposition to a second Brexit referendum earlier today and announced a date for the meaningful vote as the 14th of January - The BoE is undoubtedly on hold and concerned.
FTSE levels
- Support levels: 6738 6680 6607
- Resistance levels: 6900 7004 7098
The index is extending its series of lower lows and the price has pierced S2 and closed near the low for the day at 6738. S3 is net target located at 6687 with daily RSI leaning bearish. The Dec 2016 lows at 6680 are a key downside target.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
