The Gold has made a big drop towards the W L3 level where it found a support. However the MACD is showing a regular divergence at the bottom. We can also see a descending trend line that marks a potential bullish breakout. The divergence will become valid if the Gold breaks and closes above the red descending trend line ( around 1275) and that could push the pair up. However a close below 1270 could make a divergence invalid and the Gold should drop towards 1266 and 1260.
W L3 – Weekly Camarilla Pivot (Weekly Interim Support)
W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
D H4 – Daily Camarilla Pivot (Very Strong Daily Resistance)
D L3 – Daily Camarilla Pivot (Daily Support)
D L4 – Daily H4 Camarilla (Very Strong Daily Support)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
