FX.co ★ Technical analysis of Gold for August 10, 2016

Gold price has pulled back towards the 61.8% Fibonacci retracement and is showing signs of a bullish reversal. In my last analysis I noted the importance of the support in this area and that would be the last chance for bulls. Otherwise the scenario of a deep pull back towards $1,200 gets the lead.

After the rejection at $1,370-75 area price pulled back towards the 61.8% Fibonacci retracement support. With oscillators diverging and turning upwards, there is a good chance a new leg up has started in Gold with targets above $1,400. Support is at $1,330 and most crucial at $1,300. Resistance is at $1,350 and next at $1,375.

Blue lines - bullish channel

Gold price remains inside the medium-term bullish channel. Price is holding above the weekly tenkan-sen (red line indicator) implying the trend has not changed yet. This holds the bullish scenario for a new high towards $1,425-$1,450 alive. A break below $1,300 will confirm the bearish scenario for a deeper pull back towards $1,180.