Technical analysis of gold for August 4, 2017

Gold price is making higher highs and higher lows. The trend remains bullish as the price continues to trade inside the upward sloping channel respecting the lower boundaries. A correction towards $1,250 is justified and today's NFP could be the reason behind such a pullback. However, my long-term view remains bullish.

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Blue lines - bullish channel

Gold price is above both the Tenkan- and Kijun-sen indicators rising inside the bullish channel. There are some bearish divergence signs by both my RSI indicators and this is a warning for bulls to be very cautious. Support is at $1,260. Break it and we go to $1,250.

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On a daily basis gold is trading above the Ichimoku cloud and this is a good sign. The price pulled back towards the cloud and back tested the breakout successfully as it is now moving back towards its highs. Another test of the cloud is not out of the question. However, we focus on our longer-term bullish outlook and consider pull backs as new opportunities to add to longs.The material has been provided by InstaForex Company - www.instaforex.com