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FTSE 100 loses upside momentum while GBP/USD, gold price stabilise
FTSE 100 loses upside momentum while GBP/USD, gold price stabilise as investors continue to evaluate the US-China trade agreement.
FTSE 100 loses upside momentum
The FTSE 100 has come off Monday's 8,640 high as investors continue to evaluate the initial US-China trade agreement.
The UK blue chip index remains above last week's 8,513 low and the 55-day SMA at 8,501. While these levels underpin, further sideways trading with an overall upside bias remains in play.
A rise above Monday's high at 8,640 would likely engage last week's high at 8,686, above which lies the 8,693 late January high ahead of the 8,742 late March high.
Were the 55 SMA at 8,501 to give way, the March low at 8,463 would likely be revisited.
GBP/USD remains under pressure
GBP/USD is trying to hold above the 38.2% Fibonacci retracement of the April-to-May advance and Monday's low at $1.3163-to-$1.3140.
While this support zone underpins, the area between the 23 April and 2 May lows at $1.3234-to-$1.3260 is expected to be revisited but may well cap.
Overall short-term downward pressure will be maintained while no rise above Monday's high at $1.3304 is seen.
A fall through Monday's $1.3140 low would likely lead to the 50% retracement at $1.3076 being hit next.
Gold price stabilises above early May low
The spot gold price's 5% descent from last week's $3,435.00 per troy ounce high to Monday's $3,208 low amid a safe-haven sell-off seems to have ended for now.
The fact that the precious metal price managed to hold above its early May $3,202.00 low is encouraging for the bulls as it shows support underpinning the price.
While the $3,208.00-to-$3,202.00 support zone holds, a rise back towards the $3,300.00 area may unfold. For a bullish reversal to take shape, Monday's high at $3,325.00 would need to be taken out, though.
Failure at $3,208.00-to-$3,202.00 would put the early April high at $3,167.00 back on the map, ahead of the 55-day SMA at $3,122.00.
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