FX.co ★ Gold price reaches bullish target

Yesterday we mentioned in our analysis that if Gold price were to break above the trading range, it would produce a bullish signal and the target would be at $1,837. Not much time later, price broke above resistance and gave the much anticipated bullish signal. Today Gold price has reached the target.

Black line - resistance (broken)

Red lines- expected size of upward break out

Gold price has reached the target of $1,837 and has potential to move higher as long as price continues making higher highs and higher lows. Next upside target is at $1,868 where we find the upper boundary of the medium-term bearish channel Gold has been trading inside since last August.

When Gold was trading around $1,700 and we were talking about the double bottom, we mentioned the scenario that Gold would bounce strongly towards the upper channel boundary. Now price is approaching this resistance area and we expect to see it being tested soon. Support is at $1,800 what was previously resistance. We could see a back test of the resistance before continuing higher.