Gold Price Analysis: XAU/USD consolidates in a pennant pattern

• Gold's 4-hour chart shows a bearish pennant pattern. 
• A breakdown would shift the focus to support at $1,800.

Gold fell by over 4% on Monday and has been trading back and forth in a narrowing price ever since. 

The price action has taken the shape of a bearish pennant pattern on the 4-hour chart. 

A break below the pennant support, currently at $1,859, would imply a resumption of the sell-off from Monday's high of $1,965 and shift risk in favor of a drop to the psychological support of $1,800 (target as per the measured move method). 

Alternatively, a breakout above the upper end would expose the 10-day simple moving average (SMA) at $1,896. At press time, gold is trading at $1,880 per ounce, representing a 0.17% gain on the day. 

4-hour chart

Trend: Neutral

Technical levels