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FTSE 100 grinds higher while gold price bounces off support, GBP/USD levels out
FTSE 100 grinds higher while gold price bounces off support, GBP/USD levels out amid hope of US-China tariff deal.
FTSE 100 trades in 3-month highs
The FTSE 100 continues to grind higher in 3-month highs towards its March all-time high at 8,909. A rise above Monday's high at 8,852 would be the next step in that direction.
Minor support below the 27 May high at 8,824 is seen around the 20 May high at 8,799 ahead of the 5 June low at 8,777. While this level underpins on a daily chart closing basis, upside pressure should be retained.
GBP/USD ascent stalls
GBP/USD's advance seems to have, at least temporarily, run out of steam with the cross consolidating below last week's 3 1/3 year high at $1.3616 but remaining above its April-to-June uptrend line at $1.3511.
Together with the 6 June low at $1.3508 it may offer short-term support. Were this area to give way, though, the more significant support zone between the late April highs and late May low at $1.3444-to-$1.3416 may be revisited.
Good resistance can now be seen between the May-to-June highs at $1.3593-to-$1.3616. If bettered, the February 2022 peak at $1.3640 would be targeted.
Gold price bounces of support
The spot gold price has been range trading around the $3,350.00 per troy ounce level for several weeks now and is currently trying to bounce off Monday's $3,293.50 one-week low.
As long as this level underpins on a daily chart closing basis, the 23 May high at $3,366.00 may be revisited. For the medium-term uptrend to resume, though, the 5 June high at $3,403.00 needs to be exceeded. In this case the early May peak at $3,435.00 would be next in line, followed by the April record high at $3,500.00.
A slip through Monday's $3,293.50 low would likely put the 29 May low at $3,246.00 on the map.
A currently unexpected bearish reversal and fall through the $3,246.00 recent low may put the 1 May low at $3,202.00 back on the cards.
Only a fall through the $3,216.00-to-$3,202.00 support zone would push the early April high at $3,167.00 to the fore, ahead of the May low at $3,121.00. While it holds, the medium-term uptrend will remain intact, though.
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