FX.co ★ Gold technical analysis for February 15, 2016

Gold price continued to perform its pullback on Friday and early Monday as we expected last week. I already warned gold bulls when the price was near its highs that is was time to start a pullback towards $1,200 at least.

Gold price has broken below the tenkan- and kijun-sen indicators confirming the bearish reversal and we expect the price to test at least the 38% Fibonacci retracement. Cloud support is found at $1,175-85. A trend is bearish in the shsort-term. The medium-term trend however is bullish as long as the price is above $1,100.

Red lines - downward sloping wedge

Yellow line - long-term resistance

Gold price has broken through the weekly Ichimoku cloud resistance and above the downward sloping wedge giving a long-term bullish signal. Now we should be patient and wait for a pullback and the back test of the breakout. Gold is expected to pull back towards the broken cloud and the upper-wedge boundary level.