Gold price remains around the 61.8% Fibonacci retracement and is showing signs of strength as it is holding above the short-term support of $1,189 and is trying to break above the sideways consolidation targeting $1,220-$1,225 in the short-term.
Blue line = support
Black line = contracting triangle
Gold price is breaking above the contracting triangle consolidation pattern and this is a bullish signal. Breaking above short-term resistance at $1,203 will be a bullish signal and this gives me a target of $1,220-25. So, I believe we could see one more final upside move before a trend reversal.
Black line = support
Gold price remains above the Ichimoku cloud and above the black line support. As long as these two conditions are met, a short-term trend remains bullish. Important resistance is at $1,225-$1,230. Breaking above that level will put my longer-term bearish view in challenge. Critical resistance is also the $1,255 high. Breaking above that level will make me rethink of my bearish expectations for $1,050. Concluding, the short-term trend targets $1,225, breaking support of $1,145 will favor my bearish view for a move down to $1,050.
