Gold’s selling pressure re-emerges today and it looks like recovery from last week’s low of 1261.52 has completed yesterday. Focus is back on 1261.52 now. And break will resume the fall from 1365.24. near term outlook is quite bearish, with solid break of trend line support and rejection by the falling 55 day EMA. 1236.66 will be the next downside. While some support might be seen there on first attempt, outlook will stay bearish as long as 1309.30 resistance holds.
Also, current development also re-confirm the strong resistance from long term fibonacci level of 1920.94 (2011 high) to 1046.54 (2015 low) at 1380.56). Firm break of 1236.66 should at least send gold to 1046.54/1122.81 support zone, as a leg in the long term sideway pattern.
