FX.co ★ Gold technical analysis for January 29, 2016

Gold price continues pulling back towards support of $1,110-$1,105 as it trades inside a short-term upward sloping channel. Yesterday, I warned bulls to be cautious as our target was reached.

Yellow lines - short-term bullish channel

Blue line -bullish channel

Gold price continues to trade above the Ichimoku cloud inside the bullish channel, but is testing the kijun-sen (yellow indicator) support at $1,110. Breaking below it will open the way for a deeper pullback towards the Ichimoku cloud.

On a weekly basis, the price has reached as expected the kijun-sen but got rejected. To remain in control, bulls should not fail to hold. A failure to hold above the tenkan-sen will imply new lows below $1,000.