Gold Price Technical Analysis: Bulls likely to remain cautious below 100-hour SMA

London (Feb 5)  Over the past 24-hours or so, the precious metal has been oscillating in a narrow range and consolidating the overnight bearish break through confluence support.

   •  The mentioned region - comprising of 100-hour SMA and 23.6% Fibo. level of the $1277-$1326 recent upsurge, might now act as a key pivotal point for short-term traders.

   •  Oscillators on the daily chart maintained their bullish bias and have also managed to regain positive traction on hourly charts, pointing to the reemergence of buying interest.

   •  Meanwhile, the range-bound price action constituted towards the formation of a rectangular chart pattern, usually seen a continuation pattern but also marks a significant trend top.

   •  Hence, it would be prudent to wait for a sustained move back above the support turned resistance before traders start repositioning for a fresh leg of an appreciating move.

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