Gold is trading around $5,157 within the uptrend channel and rebounding strongly after reaching the psychological $5,000 level, which coincided with the 200 EMA and the 8/8 Murray.

This strong technical rebound could continue over the next few hours until it reaches the 61.8% Fibonacci level around $5,250, which also coincides with the 21 SMA. From that point, the instrument could resume its bearish cycle.

In case of a technical correction towards $5,060 or towards the lower band of the uptrend channel in the coming hours, traders could also grasp an opportunity to open long positions, with targets at $5,257 and $5,312.

The Eagle indicator is showing a negative signal, so we could look for opportunities to open short positions around $5,260 or $5,311, as the target could again be to reach the psychological level of $5,000.

A sharp break below the 200 EMA could change the bullish scenario for gold, and we could expect it to return to 7/8 Murray around $4,687.

Our strategy will remain bullish for the next few days in case there is a pullback towards the daily support of $5,040 or towards the $5,110 zone.