XAU/USD has been consolidating betwen 1350 and 1300 areas for an extended period of time. After rejecting the bearish trend line, Gold managed eventually to break below the strong support 1300.
Fibonacci applied to the corrective wave resulted in a bearish trend line bounce. It shows that Gold broke below 161.8% Fibs (1274) and found resistance at this level. It seems that the yellow metal is yet to test one of the next Fibs support levels.
Consider selling Gold on small corrective waves up near 1274 resistance targeting either 261.8% (1225) or 361.8% Fibs (1177). The suggested stop loss is just above 1303 resistance level.
Support: 1225, 1177
Resistance: 1274, 1303
