FX.co ★ Gold price pulls back towards our first target area

In previous posts we mentioned that although Gold price was in a bullish trend, price is vulnerable to a pull back below $1,700. Price has started turning lower yesterday and price today has broken below important short-term Ichimoku cloud indicators.

In our last analysis we noted that if price were to break below the kijun-sen (yellow line indicator) we should expect price to fall towards the Kumo. Price did exactly that. Price is now challenging the 4hour Ichimoku cloud. This is still considered a minor pull back in an up trend. We cannot say for sure a major top is in. Not yet at least. However bulls need to be very cautious and protect their profits. Gold price has important short-term support at $1,650-60.

The weekly candlestick if it stays like this until the end of the session, supports more selling for next week. Major weekly support is at $1,600. Next at $1,450.