After breaking the symmetrical triangle pattern formed on the H4 chart, gold made a new rally reaching a new high for now around 2,395. The yellow metal is approaching the psychological level of 2,400. It is likely that above 6/8 Murray, gold could extend its rise and is expected to reach 7/8 of Murray located at 2,437 in the next few days.
According to the H1 chart, we can see that gold reached the top of the bullish trend channel forming since April 5 at about 2,395. Technically, a technical correction is expected to occur below this area in the next few hours and gold could reach 2,375 and finally drop to the 21 SMA located at 2,353.
Considering that gold has been following a strong bullish trend for 12 consecutive hours, it is expected that during the next few hours in the European session, there will be a technical correction and then the instrument will be able to resume its bullish cycle.
Our trading plan for the next few hours is to sell gold below 2,395 with the target at 2,375. Around this area, we could expect a technical bounce to occur. Besides, in case there is a break below 6/8 Murray, we could continue selling with the target at 2,347, a level that coincides with the bottom of the uptrend channel. Traders could grasp the opportunity to buy in case there is a technical rebound.
