Gold Price Analysis: Bulls head towards a monthly 50% mean reversion

• XAU/USD is moving deeper into resistance territory. 
• Bears are watching for the formation of bearish structure. 

Gold remains in the hands of the bulls, but there are prospects of a correction to the downside. 

The following is a top dow analysis that illustrates the market structure and potential outcomes. 

Monthly chart

The monthly chart shows the price is meeting a critical resistance zone. 

Weekly chart

The weekly chart shows that the price is meeting a 38.2% Fibonacci level and the focus is on the prior resistance structure that would be expected to act as support on the downside. 

Daily chart

However, there is a daily support structure that may thwart the weekly bearish outlook.

Given the support, then there is a focus on the upside for the meanwhile to target prior structures.

A 50% mean reversion is in focus which has a confluence with the prior structures looking left.