FX.co ★ Technical analysis on Gold for October 11, 2023.

Red lines- bearish medium-term channel

Black lines- short-term bearish channel

Gold price is trading around $1,870. Price broke out of the black short-term bearish channel last Friday and provided a first sign of reversal. Price remains inside the medium-term bearish channel. When price broke out of the black channel we talked about the potential of a price rise towards the upper red channel boundary towards $1,900. When price was trading around $1,800 we mentioned many times that downside was limited and that a bounce was expected. Now that price has been rising we observe the RSI has reached oversold levels. In similar case in the past when RSI was at current levels, upside was limited and a strong decline followed. That is why traders need to be cautious and not over confident.