 Good morning and welcome to the church of the week video with me David madman today's day It is Wednesday the 23rd of December 2020 and the time has just gone 11 27 GMT and this week's church of the week is The footsie 100 The foot 200 has obviously been in focus this week Early is an aggressive sell-off on Monday Over fears of the new strain of COVID-19 that's doing the rounds in the UK that is prompted Topper restrictions in London parts of southern England and other parts of the UK about to turn under pretty strict restrictions as well In the last couple of days There's been kind of isolation talks surrounding the UK in relation to travel bans But that situation has seemed to have eased in the last couple and last 24 hours with We have seen a bit of a move higher in the footsie with underage now if you take a look price action the last few months In early November into mid-December it's been a solid up for a trend. The highs that we achieved in mid-December Were nine month highs the highest level seen since March The market drifted a bit lower, which is not not unusual But the pullback then we had the aggressive move seen in Monday. We did we were gain some ground yesterday And we're sort of treading water on today's session. So this video is about where could we go from here? So let's keep in mind The health crisis is an issue the UK EU trade situation is very much a live issue But if you just focus on the price action, the upward trend is still very much in play We're well off the lows of the last couple of sessions And if you continue basically to Maintain above the lows of Monday. It's likely a provider upward trend could continue We could head back up towards six thousand six hundred a move beyond that could take us up towards six thousand six hundred and forty They're there about the highs that were seen in the first, you know We could week week or ten days of December And if you go beyond that we could then be looking at levels last seen in early mid and back in early March, so you could be looking heading back up for this area here the highs of early March in an eighth out sorry six thousand eight hundred and Ninety-one to keep a matter for that level In the near term Any moves to the downside could find some support from this area here in around six thousand two hundred and fifty-eight Just below that is this is this blue line here the 50 movie average that comes in the play at six thousand two hundred and eleven Notice on a few occasions that metric acted as both Resistance and also support in the last few weeks in months So if a metric has been important has been important the past it makes more likely It'll be of importance in the future and if you do have a decent break below that We could because he is heading back down towards the turn they move the average this red line here It's really moving average is often considered to be a good grometer for whether a market is strong If it's a bothered or the market is weak if it's below it I thought couldn't play at six thousand and twenty and keep in mind That's not too far away from six thousand a big cycle as you lumber But if you notice how far we traveled between early November and into December even if you do head back down Towards six thousand the wider upward train would still be in play Now if you are going to be trading the funds you would under it is very important keep an eye on what's going on Obviously with the health crisis, but also what's going on with the EU trade with the UK EU trade talks Was very sensitive to that is the is the the British pound this here is the CMC GBP index basically the sterling index If you like and you can see here even though this that there's major uncertainty in relation to what's going to happen in relation to EU UK EU trade talks the pound has been broadly been pushing higher in the last few weeks and months and It's still in that upward trend It's above is truly moving average if we do see a jolt higher in the British pound that could impact That have negative impact in the foot two one hundred Conversely, if we do have a size of a sell-off in the British pound that could have a positive impact on the foot two one hundred essentially a number of big I don't read big international companies that are fairly fairly a fairly decent weightings in the foot two one hundred Unilever British American tobacco ashteg Glaxo Smith fine AstraZeneca. Some of these companies have international international Exposure in terms of revenue so a week a week pound often helps those companies and conversing a strong pound often first those companies And so if you are going to be trading the footsie keep an eye out for what's going on with the British pound Thank you for listening to this video. This is going to be our last video of 2020 So have a happy Christmas, and I'll chat to you in a year. Thank you very much