FX.co ★ Gold price pulls back as expected by our last analysis.

Blue lines- bullish channel

Black line- bearish divergence

In yesterday's analysis when Gold price was testing the upper channel boundary we noted that because of the RSI bearish divergence warning, a pull back was imminent. Gold price is showing rejection signs at the upper channel boundary resistance and a move towards $1,800 is expected. Gold price remains vulnerable to a bigger pull back. Support is key around $1,800 and there we will see a major test of support. We continue to prefer to be neutral if not bearish Gold.