Technical Analysis Of The FTSE 100, GBP/USD And Gold As They Stay Bid Despite Testing Resistance.

(MENAFN- DailyFX (IG)) FTSE 100 recovers further still

The FTSE 100 continues to bounce back from last week's 10,684 low and is about to test minor resistance at the 5 August 10,837 low. If exceeded, the major resistance zone between the February-to-August highs at 10,936-to-10,990 may be revisited.

Good support lies between the April-to-early July highs and last week's low at 10,745-to-10,684.

Short-term outlook: bearish while below the 7 August high at 10,960

Medium-term outlook: bullish while above the 24 July low at 10,578

FTSE 100 daily candlestick chart Source: TradingView GBP/USD probes May peak

Last Friday GBP/USD briefly exceeded its May peak at $1.3658, and in doing so hit a sixth-month high at $1.3676. The area between these levels currently acts as resistance but were it to be overcome, the 11 February high at $1.3712 may be reached as well as the September 2025 high at $1.3726. Further up lies the July 2025 peak at $1.3789.

Minor support may now be spotted around the mid-April high at $1.3599.

Short-term outlook: bullish while above the 18 August low at $1.3520

Medium-term outlook: neutral with a strong bullish undertone while trading within its $1.3140-to-$1.3676 March-to-August boundaries

GBP/USD daily candlestick chart Source: TradingView Gold ploughs ahead

Spot gold's sharp August rally is ongoing with the precious metal trading in 3-month highs and flirting with the 6 February low at $4,655.23. Above it beckon the 50% retracement of the January-to-June decline and the May peak at $4,772.16-to-$4,773.57. Another potential target zone consists of the February $4,842.60 low and the $4,891.54 April peak.

Minor support below the 38.2% Fibonacci retracement around $4,575 may be spotted around the 200-day simple moving average (SMA) at $4,516.48.

Short-term outlook: bullish while above the mid-August $4,311.04 low

Medium-term outlook: bullish while above the mid-August $4,311.04 trough

Gold daily candlestick chart Source: TradingView Important to know

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