Gold price remains under pressure as prices remain below resistance levels and a short-term bearish pattern is being formed with a trigger below $1,117.
Green line – cup with handle pattern being formed
Gold price is below the Ichimoku cloud in the 4-hour chart. This is the first bearish sign. Gold price reached a lower high of $1,150 and is now testing the recent low of $1,117. Breaking below this support will probably push the price towards the area of $1,100-$1,080.
The weekly chart is bearish. Last week's candle closed below the tenkan-sen. The tenkan-sen has a negative slope. The rejection at the 61,8% retracement is proving to be very solid. This week, bulls will need to hold above the recent lows manage to close above them in case of a breakout. Otherwise, we could see a test at $1,080. Bears must be very cautious as we are still trading at the 61.8% retracement of the entire rise, so a new upward leg is not out of the question yet.The material has been provided by InstaForex Company – www.instaforex.com