Violet lines- Fibonacci retracement levels
Gold price is trading above $1,900 as price continues making higher highs and higher lows. Trend remains bullish as price breaks above key Fibonacci retracement levels relative to the decline from $2,069 to $1,614. Gold price has broken above the key resistance of the 61.8% retracement level. It is important for bulls to hold above this area and not get rejected. Around the 61.8% retracement level we usually see trend reversals. So far there is no sign of such a reversal. The RSI has reached overbought levels but has cancelled any previous bearish divergence as it makes new higher highs.