Gold price has broken below the upward sloping trend line since it continues to consolidate sideways around $1,290. As shown in the 4 hour chart below, Gold price is now below the Ichimoku cloud and below the trend line. Early today, it also challenged the lower support area at $1,275.
Gold bulls will need to break above $1,295. There is a short-term strong resistance between $1,295-$1,304. The current technical picture favors bears as price is below resistance levels and the next support is found at $1,275-$1,270 area.
As long as Gold price does not make a daily close below $1,275 or an intraday move below $1,268, then we could still expect an upward bounce towards $1,330 and above towards the 61.8% Fibonacci retracement. Once this important support is broken, we should expect it to move towards $1,250-$1,200.
The material has been provided by InstaForex Company - www.instaforex.com
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