Gold price made a new lower low at $1,130 and I believe there are increased chances we could see a strong upward bounce now as the downward move is most probably will complete from $1,255. Trend remains bearish but I expect a corrective upward move.
Gold price is testing the short-term resistance at $1,145 and there are increased chances of a move higher towards the 38% retracement. I expect a bounce towards the $1,170-$1,180 level before resuming lower towards $1,100 and $1,050 which is my longer-term target.
In ichimoku cloud terms, trend remains fully bullish. In the 4 hour chart as shown above, resistance is found at $1,152 and then at $1,180. Gold price has already broken the tenkan-sen resistance at $1,140 and this is a sign of short-term bullishness. I remain longer-term bearish but I see a strong bounce coming.
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