FTSE 100 index closed at 7,173.09, down by 0.06% aheda of BoE

• Shares in London were consolidating on Wednesday ahead of the BoE on Thursday, paring back early losses due to solid corporate news.
• The FTSE 100 index closed at 7,173.09, down by just 0.06% for the session. 

On the Brexit front, the pound was flat vs the dollar at 1.2955 and 0.30%, unnerved by a Telegraph report that cabinet ministers have held talks on plans to delay Brexit by eight weeks.

"We expect a unanimous on-hold vote. The MPC remains in the background as Brexit enters an intense period, and forecast changes are unlikely to be material. Uncertainty remains elevated and activity is likely to remain choppy at best through 19Q1,"

Analysts at TD Securities explained.

Meanwhile, Trump's state of union address did little to give comfort to the global business community which did not address the trade dispute in any significant way as we approach the March 1st deadline, stoking speculation that an extension will be made to it and thus prolonging the uncertainties and weighing on business confidence. 

Best and worst performers

On the corporate front, the top performers were RSA Insurance Group (RSA) 532.40p 2.94%, ahead of Evraz (EVR) 528.35p 2.71% and followed by Barratt Developments (BDEV) 560.20p 2.53%. The worst performers were Ocado Group (OCDO) 968.40p -6.34%, (due to significant damage caused by the fire at its Andover warehouse) and TUI AG Reg Shs (DI) (TUI) 1,184.00p -2.23% followed by Reckitt Benckiser Group (RB.) 5,843.00p -1.96%. 

FTSE level

The price is consolidating and holding above the 100-D SMA and now the 21-W SMA, well through the  38.2% fibo retracement of the May 2018 decline located at 7040. Up ahead, bulls can taget the 50% fino of same range with the confluence of the 7200 psychological level. A mean reversion opens 7111 as the 50% retracement of the move, in line with R2.