Gold technical analysis: $1288/90 is the area to cross for the bulls

• RSI divergence and failure to surpass important resistance-area signals the pullback.
• Sustained trading above $1277 speaks for the metal’s strength.

Having posted another bounce off $1278/77 support region, gold prices remain positive around $1284.50 during the early Asian session on Wednesday.

However, the bullion is yet to cross $1288/90 resistance area comprising 38.2% Fibonacci retracement of March – April drop and highs marked since mid-April.

Additionally, 14-bar relative strength index (RSI) also shows divergence when comparing the latest high with May 06 top.

As a result, chances of the quote’s pullback to $1278/77 can’t be denied, a break of which may recall $1272 and $1268.50 on the chart.

During the precious metal’s extra downside under $1268.50, current month low near $1266.00 and 61.8% Fibonacci expansion (FE) of its moves from April 10 could gain sellers’ attention.

Meanwhile, an upside clearance of $1290 can trigger the prices increase to $1300 with $1297 being an intermediate halt.

Also, 61.8% Fibonacci retracement near $1302 and April month top near $1311 could become buyers’ favorites beyond $1300.

Gold 4-Hour chart

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