Although Gold price remains in an upward sloping channel, there is no sign from bulls that the pull back and correction from $1,300 is over. Bulls need to be very cautious at current levels and as long as price is below $1,292.
Green area- line in the sand for bullish trend
Gold price has short-term resistance at $1,292. Breaking above it will increase the chances of moving past $1,300 towards $1,320. Support is at $1,276 (channel support) and if broken we expect price to at least move towards $1,270. Next support is at $1,260 where we find the 38% Fibonacci retracement of the rise from $1,196. Breaking below it will open the way for a test of the major support area at $1,243 shown by the green rectangle. If this area fails to hold, then the bullish view for a move above $1,300 is canceled. For now short-term traders favor the bearish side as it has a better risk reward ratio.
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