Gold tests long-term pattern

The slight period of consolidation during the past few trading sessions has formed a triangle-like formation, thus stranding the rate in a diminishing trading range.

It is more likely that this pattern is breached to the upside together with the 55-hour SMA. The yellow metal should subsequently target the 100-hour SMA, the 50.00% Fibonacci retracement and the breached channel circa 1,300.00. This bullish scenario is likewise supported by the fact that the pair has been unsuccessfully testing the bottom boundary of the most senior channel (formed in November 2016) during the past two days.

In case a fall occurs, Gold should not exceed the 1,280.00 level.