Nice identification of a head and shoulders pattern on XAUUSD and there may be bearish bias as you have you have identified. For our set up, we have identified the key resistance and support levels for the short term. The first resistance that we have identified is at 1239.73 (61.8% Fibonacci extension , 38.2% Fibonacci retracement , horizontal overlap resistance), below the resistance that you have identified. Stochastic is approaching its resistance at 97% where a corresponding reversal could occur. If a reversal does occur, we may look at the 1213.26 (50% Fibonacci retracement , horizontal swing low support).
Please have a look at our idea and share with us what you think.
@ICmarkets, thank you ! I am new to this and through trading view and all the dedicated traders that are willing to share their ideas i am learning so much so fast. Based on the news about Trumps latest tweets, I was about to go long on gold, and it was just before i saw this. I will now wait to see what people decide to do around the 1239 level before I choose a direction. Many thanks again