Following the massive decline mid-Tuesday, Gold entered a period of consolidation which was still apparent on the market this morning. Even tough technical indicators are already moving north, the price has failed to follow this upward trend. Nevertheless, no further fall has likewise occurred.
It is expected that the pair tries to breach the 55-hour SMA and the 50.0% Fibonacci retracement (the breached senior channel line is also located there) at 1,300.00. The following resistance is the 100– and 200-hour moving averages.
Overall, the 1,300.00 area could limit significant appreciation, thus either leaving the rate near this line or pressuring it back lower down to another channel line at 1,280.00.
