FX.co ★ Gold price challenges major support

Gold price got rejected once again at $1,970 and as we said last week, this was a bearish sign that could push price back towards $1,900 the lower triangle boundary. Price has now reached this critical support area at $1,910-$1,900 and if it is broken we should see price under pressure for a move towards $1,850-$1,800.

After readjusting the triangle pattern boundaries, we saw price weakness to overcome the resistance around $1,960-70 area. Price is now testing major horizontal support area for the fourth time. If this support level is broken we should expect a move towards $1,850-$1,800 to follow. If this support level holds, then a bounce towards $1,950 could follow. Price is moving sideways for more than a month. Is it time for price to break out of the trading range? A big will follow for sure.