Gold Price Analysis: XAU/USD consolidates in a pennant pattern

Gold's 4-hour chart shows a bearish pennant pattern.
A breakdown would shift the focus to support at $1,800.

Omkar Godbole FXStreet Contributor

Gold fell by over 4% on Monday and has been trading back and forth in a narrowing price ever since.

The price action has taken the shape of a bearish pennant pattern on the 4-hour chart.

A break below the pennant support, currently at $1,859, would imply a resumption of the sell-off from Monday's high of $1,965 and shift risk in favor of a drop to the psychological support of $1,800 (target as per the measured move method).

Alternatively, a breakout above the upper end would expose the 10-day simple moving average (SMA) at $1,896. At press time, gold is trading at $1,880 per ounce, representing a 0.17% gain on the day.

4-hour chart

Trend: Neutral

Technical levels

XAU/USD

Overview
Today last price	1879.93
Today Daily Change	4.24
Today Daily Change %	0.23
Today daily open	1875.69

Trends
Daily SMA20	1898.03
Daily SMA50	1907.07
Daily SMA100	1903.54
Daily SMA200	1784.73

Levels
Previous Daily High	1883.93
Previous Daily Low	1862.81
Previous Weekly High	1960.4
Previous Weekly Low	1873.52
Previous Monthly High	1933.3
Previous Monthly Low	1860
Daily Fibonacci 38.2%	1875.86
Daily Fibonacci 61.8%	1870.88
Daily Pivot Point S1	1864.36
Daily Pivot Point S2	1853.02
Daily Pivot Point S3	1843.24
Daily Pivot Point R1	1885.48
Daily Pivot Point R2	1895.26
Daily Pivot Point R3	1906.6

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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