FX.co ★ Gold technical analysis for January 23, 2015

Gold price pulled back yesterday towards $1,280 as expected and then reversed to new highs. Price is pulling back down, but as long as price is above $1,285-80, we should expect to see $1,330. Otherwise, the pullback could push price towards $1,260.

Green line = support

Gold price is above the short-term Ichimoku cloud and above the short-term support of $1,285. Resistance is found at $1,310. At the current price levels we prefer to be bullish with $1,280 stop and add above $1,310 with $1,330 target.

Gold price remains inside an upward sloping channel as shown on the chart above. Losing the cloud support at $1,280-85 will push the price towards the lower channel boundary at $1,260-65. Breaking below this bullish channel could mean that a deeper correction has started with $1,200 possible target.