XAUUSD is approaching our first resistance at 1240.55 (horizontal pullback resistance, 38.2% Fibonacci retracement, 61.8%, 100% Fibonacci extension) where a strong drop might occur below this level pushing price down to our major support at 1209.50 (horizontal pullback support, 38.2%, 50% Fibonacci retracement). Stochastic (89,5,3) is also approaching our resistance and we might see a corresponding drop in price should it react off this level. Trading CFDs on margin carries high risk. Losses can exceed the initial investment so please ensure you fully understand the risks.