Gold price remains in a bearish trend making lower lows and lower highs. Price has reached our target area of $1,700-$1,690 and the major 38% Fibonacci retracement of the entire rise from the low in August 2018 to recent all time high at $2,074.
Red line - long-term support trend line
Gold price is now challenging the lower channel boundary and is also very close to the upward sloping support trend line. This is important support area and taking into consideration that the oscillators are in oversold territory I expect at least a bounce in price soon. Resistance levels above are found at $1,738 and next at $1,758. If I had a short position I would prefer to take partial profits at least at current levels. The chances of a bounce at least towards $1,730-50 area are high.
