Gold price broke the short-term bullish channel and pulled back towards the 38% Fibonacci retracement and kijun-sen support around $1,125. There is also a bigger triangle pattern being formed with critical resistance at $1,150 that bulls need to break in order to support the bullish scenarios.
Green lines – triangle pattern
Gold price is trading above the Ichimoku cloud but inside a big triangle pattern. The lower boundary of the triangle and support is found at $1,100 while important resistance is seen at $1,150. Breaking above $1,150 will open the way towards at least $1,200 and $1,300. Breaking support will open the road to $1,000.
In the weekly chart, we see this week’s candle testing the tenkan-sen (red indicator) support. A bounce from current levels will push the metal towards the kijun-sen (yellow indicator) resistance at $1,150. Breaking above it will increase chances of a move towards the weekly Ichimoku cloud at $1,200.The material has been provided by InstaForex Company – www.instaforex.com