Gold price got rejected at the previous high and resistance at $1,375 and is pulling back. The rise from $1,310 looks impulsive, so we will treat this pullback as a corrective one before the next leg up. A break below $1,310 will open the way for a push towards $1,250.
Red line – short-term support
Gold price has broken below the short-term support trend line and is moving lower. Price remains above the Kumo and has not reached yet the 38% Fibonacci retracement. Most probable target is the 61.8% Fibonacci retracement. A move below the cloud and the 61.8% Fibonacci retracement will increase the chances of a break below $1,310 and a final downward move towards $1,250.
Red horizontal line – resistance of previous highs
Blue lines – bullish medium-term channel
Gold price is reversing from its highs and a test of the daily kijun- and tenkan-sen (yellow and red line indicators) is very possible. Medium-term support is at $1,280 where we find the Kumo and the lower channel boundary. A break above $1,369 will open the way for $1,425.
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