Gold can make a pause
Read the article on FBS website
Trade idea
SELL 1278; TP 1270; SL 1282
XAU/USD has significantly advanced during the last 5 months. The upside targets haven’t been fully reached yet. However, the pair’s close last week wasn’t very convincing: a candlestick on W1 resembles a shooting star ahead of the key resistance of 1300. Plus gold is at the upper Bollinger band and 50-week MA went below 100-week MA, while the 200-week MA hasn’t started to bend upwards yet. All of this shows that sellers can have a temporary reprieve.
On H4, the price is consolidating in a triangle at the 61.8% Fibo level. A break of its lower border will open the way down to 1270 (100-week MA). On the upside, bulls need XAU/USD to return above 1292.
