Gold is strongly bullish and it could reach fresh new highs anytime, it has climbed as much as $1,944.77 level today, but unfortunately, it has failed to close above a confluence area in the first attempt. The price is trading in the green on the H4 chart and it continues to pressure, challenge, major upside obstacles.
The USD's corrective phase helped the gold price to jump higher, now, it is traded at $1,941 and it is expected to climb higher if the COVID-19 crisis continues and if the global risk persists.
Gold is struggling to close above the R3 ($1,936) level and above the first warning line (WL1) of the former ascending pitchfork. A valid breakout above the confluence area formed at the intersection of these levels will confirm further gains in the upcoming period.
Only a false breakout above the R3 and above the WL3 could signal a minor decline after the amazing rally. The 250% Fibonacci line is seen as the next upside target if the gold price will resume its bullish momentum.
GOLD Trading TipsBuy a valid breakout above the WL1 and above the R3 ($1,936) level, the first target is represented by the 250% Fibonacci line.
Sell a false breakout above the mentioned resistance levels, a bearish engulfing of any other reversal pattern could announce a minor decrease towards the $1,900 level.