FTSE 100 advances after BoE Financial Stability Report

The FTSE 100 rose on Tuesday after the Bank of England eased rules for banks to encourage continued lending to offset Brexit effects.

The Footsie was also lifted by a falling GBP, as a weaker pound can help UK exports. The FTSE 100 gained 23.11 points, or 0.35% to 6,545.37 on Tuesday while most of European indexes posted daily losses.

From a technical perspective, the daily chart shows indicators flat near overbought levels, while the index hovers near 2016 highs, which may suggest a phase of consolidation as the rally is a bit overextended. In the 4 hours chart, both RSI and Momentum are flat just above their mid-lines, supporting the longer term view.  

Support levels: 6,472 6,446 6,414. Resistance levels: 6,620 6,663 6,710