The gold price has pulled back as expected but it stays above a very important support. A confluence of short-term Fibonacci retracements is at the $1,130-35 area which provides support for the gold price. The short-term trend remains bullish as long as the price is above this area.
Blue area – support
The gold price is trading above the 4-hour chart Ichimoku cloud and above the confluence of the Fibonacci retracements relative to the $1,110 and $1,080 lows. The gold price reversed lower from $1,170 and is now testing support. So a break below this support will be a bearish sign. A bounce from the current levels will find resistance at $1,150.
The weekly candle got rejected at the 61.8% Fibonacci retracement and is pulling back to test the tenkan-sen (red indicator). A weekly close below this indicator will be a bearish signal for the medium term. The long-term trend remains bearish as the price remains below the weekly Ichimoku cloud.The material has been provided by InstaForex Company – www.instaforex.com