Nice idea on XAUUSD and there may be bearish potential as you have identified. The 1st resistance that we have identified is at 1236, just below the resistance zone that you have identified. It is a horizontal overlap resistance, with 100% Fibonacci extension and 38.2% Fibonacci retracement. Stochastic is approaching its resistance at 94% where a corresponding reversal could occur. If a reversal does occur, we may take a closer look at the 1211 support. It is a horizontal overlap support with a 23.6% Fibonacci retracement and 100% Fibonacci extension. Looking forward to see how things develop.
Please have a look at our idea and share with us what you think.
@ICmarkets, yes wonderful analysis...il be looking at mainly the 50% fib retracement for reversal. Ultimately any for form of reversal with a clear short setup that occurs before then...i may take. Tanx for the view!