The yellow metal has been trading below the 1,350.00 mark for the third consecutive session. Together with an upward-sloping trend-line, the pair has formed a minor ascending triangle.
The diminishing trading range within this pattern suggests that a breakout should occur soon. Technical indicators flash bullish signals. In line with this scenario, Gold should breach its three-day resistance and approach either the monthly R1 or the senior channel at 1,355.00 and 1,360.00, respectively.
On the other hand, bears might take advantage of bulls’ inability to push the pair above the 1,350.00 level. They could move the rate past the 200-hour SMA and towards the 1,335.00 area where the 23.60% Fibonacci retracement and a medium-term channel are located.
