XAU/USD 4H Chart: Channel Down

Gold has been under intense pressure from bears since May 18, when the bullion stopped growing around the 1,206 mark, or just above the Jun high. XAU/USD has consequently created the bearish channel pattern on the 4H chart, by violating all 55, 100 and 200-period SMAs on its way down. The medium-term outlook tends to remain fairly negative towards the precious metal, with downward influence coming from the weekly technical studies and weekly PP at 1,171. Nevertheless, a rebound cannot be ruled out as well. A formidable support should be provided by monthly/weekly S1 at 1,155, additionally reinforced by long traders, who have the majority with 63% of all open trades.