FTSE 100, GBP/USD rally while gold price drops on ceasefire hopes

FTSE 100 resumes ascent

The FTSE 100's recent decline from its near three and a half month high at 8902 amid the Israel-Iran conflict has taken it to Monday's three-week low at 8720 before recovering.

The late May high at 8824 is thus back in sight, ahead of the 19 June high at 8867. If overcome, the mid-June 8902 high and also the March all-time high at 8909 would be back in the frame. Still further up lies the psychological 9000 region which represents another potential upside target.

Minor support below Monday's 8720 low is found around the 6 May high at 8684 ahead of the 23 May low at 8601. While this level underpins on a daily chart closing basis, the medium-term uptrend remains intact.

FTSE 100 daily chart

GBP/USD surges higher

GBP/USD is swiftly heading back up again and rapidly nears its mid-June high at $1.3632 whilst targeting the February 2022 peak at $1.3640.

A currently unexpected slip may find support in the $1.3517 to $1.3508 region.

Were this area to give way, though, the 10 June low at $1.3457 and the more significant support area between the late April highs and late May low at $1.3444 to $1.3416 may be revisited.

GBP/USD daily chart

Gold price is heading back down for now

The gold price's decline from its mid-June $3451.50 per troy ounce near three-month high has so far taken it close to its 55-day simple moving average (SMA) at $3306 and its 9 June low at $3293.50. This area may offer support.

Provided that the $3293.50 low level holds on a daily chart closing basis, the medium-term uptrend is deemed to stay intact.

Failure at $3293.50 would likely push the 29 May low at $3245.50 to the fore ahead of the December to June uptrend line at $3242.

While no rise above Monday's high at $3393.50 is seen, downside pressure should retain the upper hand. Above it lies the 5 June high at $3403.50.

Gold daily chart