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Gold (XAU/USD) - Trading in a Triangle after a Wedge Breakout

Gold (XAU/USD) is trading in a triangle as you can see in the 4H chart. This follows a bullish breakout from a falling wedge pattern last week.

Gold (XAU/USD) 4H Chart 8/13

The wedge breakout pushed gold (XAU/USD) above the 200-, 100-, and 50-period Simple Moving Averages. The RSI in the 4H chart pushed above 70 showing bullish momentum. 

If price can stay north of the SMAs, the breakout is still in play and there would still be upside risk toward 1330 (daily chart shows triangle resistance here), pending a break above this week's falling resistance. Also, if the RSI holds above 40, we can say the bullish momentum from the breakout is maintained.

If gold price breaks below 1305, we might be seeing an ABC correction, which could still be in the context of a bullish outlook IF price stays above the 1295-1300 area. 

A break below 1290 however revives a bearish outlook, first toward 1280. The downside risk will be limited for now to the triangle support seen in the daily chart, which could be around 1270. 

Gold (XAU/USD) Daily Chart 8/13