XAUUSD: Gold Short with good pip potential and high rewards

Gold is well known for its volatility as has been seen over the past few weeks, where we've seen it rocket up to the 1680 range due to investors rushing in with the threat of Coronavirus. However, they have since had a reality check and as a result gold has reached a channel. This channel is easy money whilst it holds.

As shown on the graph we have been seeing lower highers and lower lows on the hourly, creating a descending, closing channel. It has twice rebounded off the pivot point which is the reason for taking partial profits but overall has a great potential to reach 1600 and below in the event it breaks to the downside, and if not plenty of profit will be banked regardless.

Keep in mind Donald Trump is speaking later today and that can create unpredictable volatility so suitable risk should be used.