© Dukascopy Bank SA
The channel up on an hourly chart of XAU/USD has been evolving throughout the last 215 hours, since Aug 7, when the price reached a bottom at 1,273.23. At some point of the pattern's life, on Aug 15, the formation was at risk of being breached, but the break-out proved to be a false one and did not turn into a full-blown sell-off that would invalidate the channel.
A present position of XAU/USD predisposes for a strong rally. This is implied by the fact that the pair is standing right next to the up-trend support line that is reinforced by the daily S1. Additionally, there is the 200-hour SMA at 1,336.58 in case the bears do not stop pushing the price south soon enough.
© Dukascopy Bank SA