Gold price made a new low towards our next target of $1,120 where the 78.6% Fibonacci retracement of the entire 2015-2016 rise is found. Trend remains bearish. However these price levels are very important as from these levels we could see at least a short-term bounce.
Gold price is trading below both the tenkan- and kijun-sen (red and yellow line indicators). As long as price remains below them there is no chance of a bounce. Cloud resistance is at $1,165 and only if price breaks above we could say that short-term trend has changed to bullish.
As said above, price reached very close to the 78.6% Fibonacci retracement of the entire rise. A strong bounce is justified from current levels. $1,220 could be the first target as this is the lower cloud boundary. Price is also inside a downward sloping wedge. If broken upwards we could even see a bounce towards the start of the wedge around $1,280-$1,300.
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