Gold price continues to trade sideways between $1,262 and $1,250. Last week we witnessed two fake breakdowns towards $1,247 only to be reversed upwards within the same hour. This is a bullish sign. Gold is very likely to start a new upward move from current levels.

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Red lines – trading range

Green rectangles- fake breakdowns

Price is below the Ichimoku cloud in the 4-hour chart. Price has been moving sideways for the last few sessions. Price has now reached the Ichimoku cloud resistance again in the 4-hour chart. In the next couple of sessions we will find out if we see a break above or below the range.

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In the weekly chart price remains at the 38% Fibonacci retracement of the rise from $1,045 to $1,375. A bounce at least towards the $1,280-90 level where we find the weekly kijun- and tenkan-sen is expected. There will be the first important test for bulls.The material has been provided by InstaForex Company – www.instaforex.com

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