Gold Price Analysis: XAU/USD eyes $1850 amid bull pennant breakout on 1H chart

• Gold extends recovery for the second straight session.
• Bull pennant breakout confirmed on the hourly chart.
• Hourly RSI peeps into the overbought territory.

Gold’s recovery from five-month lows of $1765 gains further traction on Wednesday, as the bulls gear up for a test of the earlier critical support now resistance at $1850.

The technical set up favors the bulls, as the price confirmed a bull pennant breakout on the hourly chart in the last hour. The validation came in after the metal gave an hourly closing above the falling trendline resistance at $1815.

The price pierced above the 200-hourly moving average (HMA) at $1819, which offered extra zest to the XAU bulls.

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Gold Price Chart: Hourly