Gold - Corrective Price Action Pullback Plus Weak Bounce (4 Hour Chart)

After slamming through the bids and support zone between 1,251 and 1,245 to end last week, the yellow metal has formed a corrective pullback and somewhat weak bounce, and the weakest bounce in the entire pullback.

This intimates to me that the bulls are unable to mount any strength at the moment after taking losses last week and losing key support levels.

Offers seem to be stepping in around 1,245 anticipating another leg lower, so a potential sell zone here for gold.

Impulsive price action selling from here targets 1,225 and potentially 1,206. Only a daily close above 1,251 re-ignites the bullish bias ST.

This article is part of the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates Community project. If you wish to become a guest contributor, please get in touch with our Community Manager and UGC Editor Leah Grantz leahg@forexmagnates.com and fill out this form