GOLD-USD is moving in BULLISH direction from last few hours. However, in this technical analysis, several indications are presented which suggests the possible reversal of this precious metal instrument.
Firstly, there is a presence of BEARISH divergence, instead the price is steadily RISING, the Relative Strength Index (RSI) has been showing a downward movement which indicates that the bullish momentum of GOLD-USD may be losing its momentum. Thus, this divergence between the price and the RSI suggests that the price may be overbought and due for a correction.
Secondly, there is a presence of DOUBLE TOP reversal pattern which also supports the idea of the reversal for GOLD-USD. This DOUBLE TOP Pattern was observed at one hour time frame analysis.
Based on above, it appears that the GOLD-USD pair may take the BEARISH movement from the ENTRY PRICE mentioned in the chart. Thus, it can be an opportunity for a SHORT TRADE if it breaks the ENTRY PRICE level.
The Risk to Reward Ratio is suggested 2% of the total portfolio.
Best of Luck..
Trade closed: target reached
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Take Profit Level 1 Reached..Move your stop loss to break even