FX.co ★ Gold price breaks neckline support of Head and Shoulders pattern

Gold price has broken the neckline support of the Head and Shoulders pattern we mentioned in a previous post. Now we expect price to move towards $1,900 area where we find the lower boundary of the medium-term upward sloping channel.

Green line - Resistance

Blue lines - medium-term bullish channel

Gold price is vulnerable to a move lower as price is breaking below support. Inability to push price above the right hand shoulder high at $1,950 has lead to a move lower. Price is expected now to push towards $1,900 where we find the key channel support. Breaking below this support will open the way for a move towards $1,850-$1,800.