Gold Price Expects One Lower Low Before Uptrend Restarts

London (Oct 29)  The XAU/USD (Gold) instrument made a bullish breakout above the resistance trend lines (dotted orange) but failed to break above the previous top of wave 1 (green). What is up next for Gold?

XAUUSD

The XAU/USD will probably make one more decline to complete a bearish ABC (orange) correction, which could complete a wave 2 (green) retracement. This remains valid as long as price is able to stay above the 100% Fibonacci level of wave 2 vs 1, because a break below invalidates (red x) the wave pattern. A bullish bounce at the Fibs and breakout above the resistance trend line (red) could confirm (green check) the bullish trend.

FXsteet