Gold price has given bullish reversal signals today by breaking out of the short-term bearish channel. My overall longer-term view remains bearish, but we could see a bigger bounce towards $1,120-30 in the short term.

Blue line - long-term trendline resistance

Blue area -bounce target

Gold price is trading below the Ichimoku cloud and below the long-term blue trendline resistance. The price has broken above the bearish short-term channel and above the short-term kijun-sen (yellow indicator). This implies that a bigger bounce towards the Ichimoku cloud and the area of $1,115-20 should be expected.

Blue line - long-term support (broken)

Red lines - projection of expected price movement

The weekly chart remains bearish as the gold price is below the Ichimoku cloud and below the tenkan-sen indicator (red line). The weekly candle that has just started could signal a short-term bounce for a back test of the breakdown area. In case we reach $1,120-30 area and get a rejection, we should expect the gold price to fall towards $1,040 or even $980.