GOLD long view, potential channel break

Yesterday, the price of gold formed a new two-year low at the $1614 level. Shortly after that, rapid recovery of the price followed, reaching the $1,660 level. During the Asian session, the price makes a pullback to $1640 and finds support there and starts a new bullish impulse. This level coincides with the 38.2 Fibonacci level. A drop in prices below would probably lead us to further testing the previous low, while for a bullish option, we need a break above the $1660 level and try to hold on there. With a new bullish impulse, the price of gold could recover to the previous high at the $1685 level. We are still in a two-week descending channel, and the price will continue to decline as long as we are in it.