Gold price pulled back towards our short-term target area and the 38% Fibonacci retracement. Price bounced but as long as price is below $1,244 we expect more downside to follow towards $1,230.
Blue line - short-term important trend line support
Green line- major trend line support
Red rectangle - short-term target
Gold price remains in a medium-term bullish up trend having started back in August. In the short-term the move that started at $1,211 is complete at $1,250 which was our minimum target once $1,230 broke upwards. Price is now pulling back. A move back below $1,230 would be a bearish sign. The blue trend line support is important for the short-term bullish scenario. The Green trend line is the most important level for the medium-term bullish trend. If price breaks the green trend line we could see Gold back below $1,200 if not $1,180 again. Gold price should find support above $1,230 and start its next leg towards $1,270. If support is not respected, expect $1,210 to be challenged.
The material has been provided by InstaForex Company - www.instaforex.com