Blue lines- Fibonacci retracement levels
Red lines- bullish channel
Gold price is under pressure. Price has reached our first target around $1,960 and the 38% Fibonacci retracement level. Price has been making higher highs and higher lows forming the red upward sloping channel. A pull back towards the lower channel boundary around $1,935 is justified. Support is found at $1,935-30 area which was once resistance. Bulls expect the continuation of the higher highs and higher lows sequence. Gold price can pull back towards $1,940-35 and then resume its upward movement towards $1,986 (50% retracement) or even $2,008 (61.8% retracement).
