Gold price is trading above $1,850. Earlier today Gold price was as high as $1,873. Yesterday Gold price broke above the short-term resistance trend line. Today price is back testing the break out and support area of $1,850-55.
Black lines- Fibonacci retracements
Blue lines- expected movement
Gold price once again stopped its advance at the 38% Fibonacci retracement. Price is back testing the broken red resistance trend line from above. Bulls need to defend $1,850-55. Failure to do so, will decrease dramatically the chances of a move towards $1,900 which was our target after breaking above the red resistance trend line. So far the bullish setup for a move towards $1,900 remains valid.
