Gold Analysis: Potential Trend Reversal Ahead

Gold rebounded from the resistance at the psychological level of 2000. The asset’s price should potentially drop to the level of 1900, next to the broken downtrend. So, let’s observe if it is going to happen.The price of the British pound broke the downtrend and jumped. The asset’s price has closely approached the resistance level of 1.2600, which is also the middle point of the latest descending move (50% Fibonacci retracement). The asset might potentially rebound from the resistance and drop. So, it would be very important to follow the candlestick formations, that is, the price movements next to this level.The American stock index S&P500 rebounded from the resistance level of 4607 and underwent a correction toward the broken downtrend. The price of this asset might also break the resistance and hit new heights. However, the asset is likely to undergo a correction again.