XAU/USD 4H Chart: Descending Triangle

The XAU/USD is trading in the short-term descending triangle. The pattern started to form after the pair bounced off from the upper-trend line of the long-term ascending channel. The sharp drop of gold's price on Monday had almost led to the premature breakout. However, in the early morning of today's trading session the pair managed to break through the combined resistance set up by the bottom boundary of the triangle with the weekly S1 at 1,246.09 and, thus, back again into the pattern. Now, the pair has to bypass another barrier formed by the 55-period SMA, the weekly PP and the monthly PP at the 1,253.00, which crosses with the upper trend-line of the triangle. Most likely the pair will more than one attempt to pass through this resistance level.