FTSE 100 is in a Holding after better UK GDP data

Summary:

The FTSE 100 is in a holding pattern after the relatively better UK GDP data. The UK also published manufacturing and industrial production dat

The FTSE 100 is falling today after the relatively mixed economic numbers from the UK. The index has dropped by 0.20% and is trading at 6,520, which is below this year’s double-top of 6,590.

FTSE 100 news: The catalyst for the FTSE 100 is the mixed economic numbers from the UK. In a report today, the Office of National Statistics (ONS), the country’s economy contracted by 7.8% in the fourth quarter. This was a better contraction by the consensus estimate of a 8.1% decline. The economy expanded by 1.0% on a QoQ basis.

However, data showed that industrial production fell by 3.3% while manufacturing production declined by 2.5%. Construction output also declined by 2.9% after expanding by 1.7% in November. These numbers are important for the FTSE 100 index because they are an important measurement of the performance of the economy.

FTSE 100 technical outlook

The four-hour chart shows that the FTSE 100 index has been in consolidation mode recently. In the past few days, it has remained between the support and resistance level of 6,490 and 6,591, respectively. The RSI is also at the neural level of 50. As a result, it is along the 15-day and 25-day exponential moving averages. Like I noted yesterday, the index will remain in the current range for a while. The key levels to watch are the support and resistance levels mentioned above.