Gold price has made a low at the 61.8% Fibonacci retracement level of the rise from $1,240 to $1,345. The form of the downward move from the highs is a bullish wedge. This pattern may cancel our longer-term bearish view that wave E is complete or it may cancel even the scenario that we are in a wave 4 correction.

Gold price made 5 waves up from $1,240 to $1,345. The pull back from $1,345 to the 61.8% retracement is corrective. The bullish wedge if broken upwards could signal an important trend change. Important resistance levels are found at $1,295 and $1,305. If Gold price breaks above the Ichimoku cloud resistance, then we should expect it to rise above $1,313 of even $1,326. Price bounced off the 61.8% retracement and this puts our longer-term preferred bearish scenario in danger.

Price has broken above the daily Ichimoku cloud once again. This is a good sign for bulls. The decline from $1,346 may only be wave B and the rise from $1,240 to $1,346 wave A. So, now the market might be preparing for wave C of wave E of wave 4 towards $1,360. This scenario will increase its chances of success if price breaks above $1,313. If Gold price gets rejected at $1,295 and pulls back down towards $1,280, then we will have to wait to see how it reacts near the important support at $1,270. If wave E is not already complete, we should expect a bounce towards $1,350-60.