UK PM Boris Johnson suffered a serious setback as 35 MPs from his own Conservative Party opposed the extension of coronavirus laws for six months. However, investors seem to like the news as Britain’s FTSE futures which initially dropped below our key support level at 6650 in early trade yesterday, made an impressive comeback above the 6700 resistance. Jobless claims in the US dropping to a one-year low and President Biden’s pledge to boost vaccination efforts, also helped boost global shares higher and therefore we can expect to see a positive start today as well. But from a technical perspective the UK index is about to test the 200-period SMA in addition to our resistance at 6740, which may trigger some profit booking with 6700 now turned support.
Support: 6700 / 6650
Resistance: 6740 / 6760
