XAUUSD Now that 1260 is gone!

Well, bears have finally taken that 1260 after a battle. With that level gone, the chart points to 1200 as the next major obstacle. A re-test of 1260 can provide good entries for those on the short side. However, with risk of correction lower in equities, I am hesitant to play the short side and will instead use further drops to built long position later on. Any thoughts?