Following a rather calm Tuesday morning, bulls started to dominate Gold later in the session, thus dashing through the 55– and 100-hour SMAs. This bullish momentum halted shortly after at the 200-hour moving average located near 1,300.00.
This line which has proved to be a strong resistance level this week was breached early today. In case the pair manages to remain above this long-term SMA, it is likely that the rate continues to strengthen until the 200-period (4H) SMA located near 1,310.00.
Conversely, a failure to surpass above this psychological level should trigger sellers and result in a decline. A possible southern target is the 61.80% Fibo retracement at 1,285.00.
