Early in the American session, gold is trading around 3,021, below the 21-SMA, within the bearish trend channel forming since March 19.
On the H4 chart, we can see that gold is under bearish pressure and is expected to continue trading within this channel in the coming days.
If the pattern breaks and consolidates above the 21-SMA and above 3,025, we could expect a further bullish movement. In this case, gold could reach 3,046 around 7/8 of the Murray and eventually, 8/8 Murray around 3,125.
Technically, the Eagle indicator is showing a negative signal. So, we will look for opportunities to sell whenever the gold price consolidates below the 21SMA, with the first target at 6/8 Murray located at 2,968. Finally, we could sell with a target at 2,926 (200 EMA).
Gold is still overbought. Therefore, our strategy will be to sell below 7/8 Murray with short-term targets at 5/8 around 2,890.
