Gold price has made a reversal to the upside from the $1,758 low that we saw yesterday. Price is now challenging the resistance trend line that has produced recently many rejections and bearish reversals. Gold price reached very close to the 61.8% Fibonacci retracement and our first target area.
Blue line- resistance trend line
Black lines - Fibonacci retracements
As we mentioned in yesterday's analysis, our first target was at the 61.8% retracement and the $1,756 level. Price reached very close to that area and reversed strongly to the upside. Price is challenging the blue trend line. Another rejection here would be a new bearish signal. If bulls manage to recapture $1,795 and stay above it, this would be a sign of strength. Our view remains bearish as we mentioned yesterday as long as price is below $1,809.
