Gold technical analysis for January 27, 2016

Gold price has continued higher as expected towards our target area of $1,120-30. The current price structure implies that we can see even higher levels towards $1,130. A trend remains bullish in the short term.

Blue lines - bullish channel

Blue area- price target

Gold price continues to trade above the Ichimoku cloud and both tenkan- and kijun-sen indicators. The trend is bullish. Support is at $1,110 and resistance at $1,133 where we also find the 61.8% Fibonacci retracement of the decline from $1,190 to $1,050.

In the weekly chart above we can clearly see how the price is testing the kijun-sen (yellow indicator) resistance. This is important resistance so bulls need to be very cautious in case we see a rejection. A breakout above it could open the way for a bigger bounce towards the Ichimoku cloud near $1,150.The material has been provided by InstaForex Company - www.instaforex.com