The zone has been formed by the 76.4 percent Fibonacci retracement on the fall from $1,433.31 to the Dec. 31, 2013 low of $1,184.50 and the 76.4 percent Fibonacci projection level of an upward wave C.
It could be technically difficult to confirm a break above the zone, based on gold's behaviour around an earlier resistance at $1,341, the 61.8 percent projection level.
A close above $1,387 on daily chart could be a reliable signal of this break.
However, gold will most likely pause around the zone or retrace moderately.
The views expressed are his own.
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