Gold price is showing some signs of short-term reversal after being rejected at the 50% Fibonacci retracement. There is increased probability to see a pullback towards $1,210-$1,200 today. There is still some upside potential towards $1,240-50 but traders should focus on the downside.
Orange lines=small time frame bullish channel
Blue lines = medium-term bullish channel
Black rectangle = possible pull back target
Gold price has broken out of the short-term upward sloping channel. Gold price could have made a short-term top and a small pullback should be expected today or even tomorrow. The pullback target is the black rectangle area and Ichimoku cloud support around $1,210-05.
The weekly chart remains bearish as the price continues to trade below the kijun-sen (yellow line) and below the Ichimoku cloud. Moreover, the resistance of the 50% Fibonacci retracement proves to be a strong resistance again. Support is at $1,200 for this week by the tenkan-sen (red line). A closure below that level will be a bearish signal combined with the rejection at the lower cloud boundaries.
The material has been provided by InstaForex Company - www.instaforex.com