Early in the American session, gold is trading within the bullish trend channel forming since January 20th and below +2/8 Murray. This area around 2,890 represents a strong resistance. Currently, the bullish force is exhausted, but after a technical rebound around 2,850, gold could rise again to reach 2,890.
If the gold price consolidates below 2,868, we could expect it to continue falling in the next few hours until it reaches +1/8 Murray located at 2,851. The price could even reach the bottom of the uptrend channel that coincides with 8/8 Murray around 2,812.
On the other hand, we should be careful if the gold price breaks and consolidates above 2,870. This could mean a further bullish movement so that the metal could reach +2/8 of Murray located at 2,890. Eventually, it could even touch the psychological level of 2,900.
The eagle indicator is reaching the extremely overbought zone and is showing a negative signal. Hence, we could sell at current price levels around 2,868 with a target at 2,812.
