Sterling gold has some potentially positive technicals:
1. Yesterday it held the 200 day moving average
2. £565 low was a 49% retracement of Oct08-Feb09 rally - very close to a fibonacci 50% support level
3. The rally from £427 to £698 was impulsive & 1.63x which is another fibonacci multiple. The correction has been a 3 wave overlapping slow move
4.There is some bullish RSI divergence over the last few days - a sign of lack of downside momentum - and a possible reversal back up
5. From a market profile perspective the mathematical average of the Oct08 profile is £562.5, the market's longest line (where the market thinks the average should be ) is around £600 - so if the market is right, the gold price would have to rally to £773 to balance the demand/supply creating a balanced distribution with new mathematical midpoint at £600. I would expect this to be a fast, impulsive upmove taking the dollar price up to my $1100 objective.
happy trading.........
the objective one
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