Early in the American session, gold was trading around 2,664, above the 200 EMA, and above the 4/8 Murray with a bullish bias.
On the H4 chart, we can see that gold has strong resistance between 2,664 and 2,675. Both levels could be seen as a strong resistance zone that could stop gold from rising.
If gold reaches 2,675 in the next few hours and fails to consolidate above this area, it will be seen as a signal to sell, with targets at 2,656 and 2,635.
Since the opening of trading this week, gold has made a strong technical rebound and has therefore gained more than $40, which means that it could be approaching overbought levels. So, we will expect resistance around 2,675.
If gold consolidates above 2,650 in the coming days, it is still expected to remain in the bullish trend and could reach 2,695 in the short term.
