Possible Head & Shoulder Pattern on the 1-hour Chart

Gold 1-hour chart

A potential  head & shoulders pattern can be spotted in the 1-hour chart. If price goes down from potential reversal zone to test the neckline, it could be possibly a right shoulder. 
A safe trade would be waiting for the right shoulder to form, and then you enter the trade after price goes down and breaks the neckline.  

However, you can try to catch the top of the right shoulder by finding the potential right shoulder top. If you get lucky shorting from the top of the right shoulder, you can get a huge reward while risk is small.  
Here I draw a potential reversal zone by two different Fibonacci levels 61.8% and 76.4% of the last downward action from 1311 to 1293. So the potential reversal zone stays around 1304 to 1307. That could be where the right shoulder forms possibly. You should look for some kind of reversal signal at that zone such as reversal candle,  MACD or  RSI divergences, overbought  RSI .


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