FX.co ★ Gold has tested backside of the support line. 1,270 remains key

Technical outlook and chart setups:

The yellow metal has done the following in past few trading sessions:

1. Broken the channel/support line.

2. Rallied back and tested the support turned resistance region around 1,380.00 level.

3. Support at 1,270.00 still remains intact.

Possibilities from here are:

1. Consolidation at current level and then continued rally. 1,405/10 region will be acting as strong resistance though.

2. In case of 1,270.00 break, the metal would turn towards fresh lows and selling rallies would be favored.

Trading recommendations:

Remain long, stop is below 1,270.00.

Good luck!