XAUUSD 2-Hour Chart: Head & Shoulders Pattern in Focus - Gold (XAUUSD) Forms Potential H&S Top

2026-01-16

The 2-hour XAUUSD chart is developing a distinct Head and Shoulders pattern, signaling a potential near-term bearish reversal. Price is currently trading around 4,700.00, having failed to reclaim the neckline convincingly.

• Support (Neckline): 4,580.00 – 4,560.00 zone. A confirmed break below this is the key bearish trigger.

• Resistance: The right shoulder high near 4,720.00, followed by the head peak at 4,740.54.

• Major Zone: The 4,700 – 4,720 area is now critical resistance. The pattern is invalidated above 4,740.55.

• Pattern Structure: Left Shoulder (LS), Head (H ~4,740.54), Right Shoulder (RS forming).

• Sell Zone: Consider shorts on a breakdown below 4,580 (neckline), targeting 4,540 – 4,520 initially, with a stop above 4,600.

• Buy Zone: Only above 4,740.55 (head high) for a bullish resumption, targeting 4,760+.

Volume has declined during the right shoulder formation, supporting the loss of bullish momentum. Traders should watch for a close below 4,580 to confirm the pattern and target the measured move downward.