FX.co ★ Gold technical analysis for February 5, 2016

Gold price moved even higher yesterday approaching our weekly target at $1,150. A trend remains bullish. The price has reached important weekly resistance and a rejection at current levels is very possible, so bulls should be very cautious.

Gold price remains above the Ichimoku cloud but has reached the 78.6% Fibonacci retracement resistance of a decline from $1,190. I do not believe there is much room upside. If we see gold price moving higher and even breaking above $1,190, which is the next most important level, then we can say that gold has every chance to reach a long-term low of $1,050.

Gold price has finally reached the weekly Ichimoku cloud resistance. For a long time we have been bullish on gold amid the signs and resistance levels which have been broken one by one were. Now it is time to be cautious as we have reached important resistance levels.