Last week price action completed a Head & Shoulder pattern after a break of key support turned resistance around 1485.00 then quickly reversed and blew back through key resistance turning back into support.
Gold is now in a consolidation phase and is building momentum for the next explosive move. The 4hour 38.2% fib level has already been tested twice and is showing signs of more bullish pressure yet to enter the market.
Ideally a test of the MA’s, formation of a Higher Low along with a strong bullish pattern would be enough confirmation for entry.
Our target will be the -27% fib level around 1520.00 and our second target will be 1525.500 area which is also a key weekly resistance level
If price action fails to push higher from the current level we will look for some rejection around the next significant prz level, the 61.8% around 1488.00 area.