FX.co ★ Gold testing important resistance

Red lines- bearish channel

Green line- horizontal support

Gold price is trading around $1,675. Gold remains inside the medium-term bearish channel and is now testing the upper channel boundary resistance. Last week bulls managed to defend successfully the horizontal support around $1,615-20 and produced a strong bounce. Gold is now testing very important resistance levels. The RSI has already reached overbought levels in the 4 hour chart. Short-term support is at $1,666 and next at $1,643. Short-term trend favors bulls as the bullish momentum remains intact and price above $1,643. Bulls need to show more signs of strength now by breaking out of the bearish channel.