Gold price is still trading below $1,850. Price has broken out of the bullish short-term channel and is showing reversal signs. Gold price continues to hold above key short-term support but the pull back is coming.
Blue rectangle -resistance
Gold price is turning lower and the first pull back target is at the 38% Fibonacci retracement at $1,827. Next target is at the 61.8% Fibonacci level of $1,810. Bulls do not want to see price below this level as this will increase chances of a move below $1,780 towards $1,750-30. Resistance remains critical at $1,840-50. Breaking above it will open the way for a move to $1,900. But so far any upside move has been met with strong sellers pushing prices back below $1,850.
