FX.co ★ Gold price forms a triangle pattern

Gold price is forming a triangle pattern. The inability to break above $1,960-70 resistance and the weakness by bears to break below $1,925 support, has lead price to form a triangle pattern. I expect this pattern to break to the upside, as the main trend so far has been bullish.

Pink lines -triangle pattern

Gold price currently favors bullish positioning. Because price is at the lower triangle boundary and our most probable outcome is an upward break out of the triangle. Target is new highs towards $2,100. Failure to hold above $1,920-$1,900 will be a bearish sign that will most probably lead price to $1,850-$1,800. This is the least probable scenario. Resistance remains key at $1,960-70. Bulls need to break above this level to confirm our view.