XAUUSD Consolidation Zone

As you see in the 4H chart, price is moving in a consolidation area between the support and resistance levels (1828-1870).

Price has touched the resistance area in a big upside move only in one candle which shows there was an upside pressure and bulls were trying to keep price high, but they failed to break the resistance and pushed to the downside.

Currently, price is moving downside towards the yellow support level, and since the main trend is bearish, we can expect a downside breakout on the support level and a drop towards the last major low.

As long as price is in the consolidation area, we should wait for the breakout first, then enter the position in the same direction of the breakout.