Gold has broken the intermediate support of its medium term bearish channel at 1.644 resulting in acceleration. A pull back on these levels is expected before the gold will reach the lower limit of its channel to 1,620.
Technical indicators provide buyers signals and evolvement in the oversell zone confirms the assumption of a pull back. Bollinger bands are much discarded due to the strong recent decline. The situation is expected to stabilize soon.
According to previous events the market will provide a bearish opportunity at the level 1.644 with 1.634 and 1.630 seen as first tgargets. In case the level 1.647 is passed through, the prospect scenario will be altered.
The material has been provided by Instaforex Company - instaforex.com
