The gold made a false-break of the strong resistance and went back to the support area of 1950 for a retest. What to expect from the price?
The price is unable to pass the 1981 liquidity area and we see a decline after the false breakout of the line (orange descending line) The retest of support 1954, formed on Thursday, is forming. From the level of support a small pullback is possible, after which it is worth watching the price reaction. If consolidation starts to form near the level of 1954 or below this level, further breakdown and decline in price to the following strong liquidity areas is possible: 1949, 1944 and even support of the descending channel. The moving averages on the 1-hour timeframe act as resistance.
Strong resistance: 1964, descending resistance line Strong support: 1954, 1949, 1944. I expect the retest of the support area 1954-1949, which might be followed by a pullback, which will determine the further price formation. Breakout of the resistance will make the price strengthen, but the retest of the support area will trigger a breakout and further downside!