FTSE 100 loses upside momentum while gold price bounces back and GBP/USD advances
FTSE 100 loses upside momentum as rotation out of European back into US stocks takes place while the gold price bounces off support and GBP/USD advances further still.
FTSE 100 loses upside momentum
The FTSE 100's retracement from its near 3 1/2 month mid-June high at 8,902 has taken it to last week's 8,695 low before recovering to Monday's 8,818 high.
Together with the late May high at 8,824 this week's high acts as short-term resistance with the April-to-July support line at 8,759 acting as minor support.
Were it to be slipped through, the 23 June low at 8,720 may be revisited and perhaps also last week's low at 8,695.
A fall through 8,695 would likely engage the 55-day simple moving average (SMA) at 8,659 and perhaps also the 23 May low at 8,601. While this level holds, the medium-term uptrend remains intact.
Were the 8,818-to-8,824 resistance area to be exceeded, the 19 June high at 8,867 would probably be targeted. If bettered, the mid-June 8,902 high and also the March all-time high at 8,909 may be back in the frame. Still further up lies the psychological 9,000 region which represents another potential upside target.
GBP/USD gradually rises
GBP/USD is gingerly continuing its advance, nearing last week's high at $1.3771, a rise above which would lead to the mid-October 2021 high at $1.3835 being in focus.
Immediate upside pressure should be maintained while Monday's low at $1.3674 underpins on a daily chart closing basis. If not, the $1.3669-to-$1.3616 support zone may be revisited.
Gold price bounces off support
The gold price's decline from its mid-June $3,451.50 per troy ounce near 3-month high to Monday's $3,244.42 low is being followed by another up leg towards Thursday's $3,350.42 high. If overcome, the 23 May high at $3,366 and the 23 June high at $3,393.64 would be back in focus, together with the 5 June peak at $3,403.62.
Slips should find support between the 9 and 24 June lows at $3,295.32-to-$3,293.5.
Further support sits between the 29 May and 30 June lows at $3,245.56-to-$3,244.42.
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