FTSE under pressure while GBP/USD grinds higher and gold hits record high
The FTSE 100 remains under pressure, having last week fallen through its uptrend line, while GBP/USD grinds higher and the gold price hits a record high.
The US dollar steadied near a five-week low while gold surged to a record $3,508.00 an ounce on expectations of a Federal Reserve (Fed) rate cut this month, with markets pricing in an 89% chance of a 25 basis point move in September.
Wall Street reopens after Monday’s holiday, with futures slightly weaker as investors focus on upcoming labour data, including Friday’s non-farm payrolls (NFPs), to gauge the possibility of a larger cut.
FTSE 100 remains under pressure
The FTSE 100 probes the July-to-early August highs at 9,189-to-9,157 which may act as a support zone.
If fallen through on a daily chart closing basis, the mid-August low at 9,127 will be next in line.
Resistance can now be spotted at the mid-August high at 9,228. While it caps, downside pressure is likely to be maintained.
FTSE 100 daily candlestick chart
GBP/USD remains bid
GBP/USD continues to grind higher and is trading close to two-week highs which may well be revisited while the 55-day simple moving average (SMA) and August-to-September uptrend line at $1.3492-to-$1.3481 underpin. While this remains the case, the late July and mid-August highs at $1.3589-to-$1.3595 will probably remain in sight.
A fall through $1.3481 would probably lead to the late August lows at $1.3446-to-$1.3417 being revisited.
GBP/USD daily candlestick chart
Gold trades in record highs
The price of gold is trading in record highs and briefly rose above its psychological resistance at $3,500.00 per troy ounce, a level where it topped out in April.
If a daily chart close above the April peak at $3,500.20 were to be made, the psychological $4,000.00 region would be next in line.
In case of the $3,500.00 area once again acting as resistance, the May-to-July highs at $3,451.52-to-$3,435.05 should act as strong support.
Gold daily candlestick chart
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