Gold's Technical Outlook: Trendline Test and Potential Reversal

After careful declines observed since the middle of July, gold currently rests precisely on the ascending trendline originating from February – as indicated in the chart below. Breaching this trendline might initiate a more prominent inclination towards bearish technical indicators. This, in turn, exposes the 38.2% Fibonacci retracement level at 1903, which notably aligns closely with the troughs experienced in June.

Furthermore, recent price action is undermining a bullish Golden Cross formed between the 20- and 50-day Moving Averages (MA). If the losses persist, this signal could turn out to be misleading. Consequently, the potential exists for the precious metal to be on the brink of a broader reversal, reflecting the progress observed in its upward movement between November and early May.

With this in consideration, let's delve deeper into the 4-hour time frame to examine how the immediate-term technical landscape is evolving.

XAUUSD SELL 1929 -1931💯💯

✅ TP1: 1925
✅ TP2: 1922

🛑 SL: 1935