Gold price makes new lower lows according to plan.

Gold has made a low below $1,850 today entering our pull back target zone. As per our previous analysis, we expected Gold price to continue lower towards $1,850-20 area after breaking below $1,870. Gold price has made an important top at $1,916 and we expected a pull back before the up trend resumes.

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Blue upward sloping lines -bullish channel (broken)

Blue lines - Fibonacci retracement

Red rectangle- resistance

Gold price has broken out of the bullish channel. Our first target is the 38% Fibonacci retracement level around $1,825. Short-term trend is bearish as Gold is making lower lows and lower highs combined with the exit out of the channel. Resistance remains key at $1,900-$1,905 and we remain bearish as long as price is below this level. I do not believe today's low is going to hold and that the current bounce is just a counter trend move.

The material has been provided by InstaForex Company - www.instaforex.com

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