FX.co ★ Ichimoku cloud indicator short-term analysis of Gold for January 30, 2019

Gold price remains supported despite the pull back from $1,588 to $1,563. Price continues to make higher highs and higher lows after bottoming back on January 14th and is trading inside a bullish channel.

Green lines - bullish channel

Red lines - Fibonacci extensions

Gold price has so far managed to reach our first target which was at $1,578. Price since then pulled back towards $1,560 and is now bouncing off the lower channel boundary. We might next see the second Fibonacci extension target at $1,599. The oscillators are not in overbought territory and both an positive slope. This shows that there is potential to the upside.

In Ichimoku cloud terms, Gold price remains in a bullish trend. Price is above both the tenkan- and kijun-sen indicators. The Kumo is blue, the Chikou span is above price candlesticks, the tenkan-sen (red line indicator) is respected. As long as price holds above $1,563 short-term trend is bullish. If price breaks below it then we expect to see $1,544 and if this fails to hold, we expect to see $1,500. Until then we remain optimistic looking for $1,600.