**Technical Analysis: FTSE 100 and GBP/USD Rebound from Support, Gold Trades Sideways**
*Based on the original article by Mahmoud Abdallah, MENAFN*
The global financial markets have seen notable volatility amid shifting economic data, fluctuating investor sentiment, and ongoing geopolitical events. Among these, the FTSE 100, GBP/USD, and the gold market have captured particular attention. Each has presented intriguing price movements, with the FTSE 100 and GBP/USD bouncing off support levels, while gold trades in a sideways range. By examining key technical levels, fundamental drivers, and prevailing trends, traders can glean valuable insights for short- and medium-term positioning.
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## FTSE 100: Bollinger Band Rebound and Prospective Upside
The UK blue-chip FTSE 100 index began the week with a notable rebound after testing support. Technical and fundamental developments support the view that the index may attempt further gains in the near term.
### Technical Analysis
– The FTSE 100 found solid support around the 6170 level, corresponding to the lower Bollinger Band on daily charts.
– Stochastic oscillators highlighted deeply oversold conditions, signaling a potential for upward correction or fresh buying interest.
– Initial resistance is located at the 6270 area, aligning with the 20-day moving average. A close above this level would target higher levels at 6330 and 6430.
– Short-term momentum favors consolidation if resistance holds, but a decisive break could open the door for a stronger corrective rally toward multi-week highs.
### Key Support and Resistance Levels
– **Support:** 6170, 6090
– **Resistance:** 6270, 6330, 6430
### Fundamentals and Market Sentiment
The FTSE 100’s recovery came despite persistent concerns about the UK’s economic outlook, Brexit negotiations, and the enduring impact of COVID-19. The Bank of England’s accommodative stance and government fiscal measures offered some reassurance for equity investors, contributing to stabilization and a technical rebound.
Positive developments that could influence further gains include:
– Signs of progress on EU-UK trade deals, reducing Brexit-related uncertainty,
– Signs of economic stabilization or improvement in data releases,
– Equity-friendly policies and dovish central bank rhetoric.
However, risks such as deteriorating public health data, stalling economic recovery, or renewed Brexit impasses could renew downside pressure and push the index back toward established support levels.
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## GBP/USD: Bouncing off Multi-Day Support
The British pound versus US dollar (GBP/USD) currency pair exhibited classic price action in recent sessions by retesting and rebounding from multi-day support, a move closely tracked by forex traders.
### Technical Overview
– GBP/USD tested and held support around the 1.2920-1.2940 area, a key pivot from previous sessions.
– Oscillators such as the Relative Strength Index (RSI) suggested the pair avoided a deeper slide into oversold territory.
– Immediate resistance stands at the psychological 1.3000 handle. A move above opens up the path to the 1.3080 and 1.3180 regions.
– Below support at 1.2920, further declines could challenge the 1.2850 and 1.2800 zones, the latter representing a more significant bullish line in the sand.
### Key Levels
– **Support:** 1.2920, 1.2850, 1.2800
– **Resistance:** 1.3000, 1.3080, 1.3180
### Drivers of Price Action
This recent stabilization in GBP/USD reflects a confluence of factors:
– US dollar weakness, tied to loose Federal Reserve policy and uncertainty around US stimulus measures,
– Improved sentiment around UK-EU negotiations,
– Signs of resilience in UK economic data, staving off deeper pessimism despite ongoing challenges.
Expect GBP/USD to remain volatile, with
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