21.08.202018:37 Forex Analysis & Reviews: Gold price forms a Head and shoulders pattern

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Gold price is forming in the 4 hour chart a Head and shoulders pattern. With the neckline support at $1,928 it is important for bulls to defend this price level. Breaking below this level will open the way for a move towards $1,900 and lower.

Red line - neck line support

Green lines - Head and Shoulders pattern

Gold price is challenging the neckline support at $1,928. We get a bearish signal if price breaks and closes below the red line support. Bulls want price to bounce off support and break above the right hand shoulder. This means that bulls want price to break above $1,950 in order to lower the chances of success of this bearish pattern.

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