Gold price has reached our target area of $1,250-60. Trend remains bullish. Gold price could see $1,260 or higher today but bulls need to be cautious as this is a strong short-term resistance area. A pullback even for the bullish scenario is justified and highly probable.
Blue lines – bullish channel
Gold price is trading inside the bullish channel. Trend is clearly bullish in the short term. Support is at $1,247 and resistance at $1,260. Cloud support at $1,230 could be a nice short-term pullback target to confirm break out with a backtest.
On a daily basis, trend remains bearish as price is below the Kumo (cloud) and has not broken above the 61.8% Fibonacci retracement yet. We mentioned in previous posts that a pause in the rise could be seen between $1,250-60 as this is important resistance area.The material has been provided by InstaForex Company – www.instaforex.com