Gold price remains in a down trend but has moved away from its recent lows at $1,262 towards the break point and the previous low at $1,270. More downside is expected after this back test. Gold price is expected to continue lower towards $1,240-50 as long as price is below $1,295.
Gold price remains below the Ichimoku cloud in the 4 hour chart and below both the short- and long-term red trend lines. Resistance is found at $1,283. Next resistance is at $1,295. Support is at $1,263, if broken it will push price towards $1,250.
The daily trend remains bearish. Price is below the Ichimoku cloud. Price has broken the long-term trend line support from $1,180 and $1,240. It is now back testing that level of support that was broken. Once the back test is over, I expect more downside pressures.
The material has been provided by InstaForex Company - www.instaforex.com
