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Gold Just Broke Above its Falling Wedge

Gold is rallying sharply during the 8/6 US session, bringing it from 1290 to about 1310. The 4H chart shows that this rally broke above a falling wedge pattern signaling a bullish outlook. 

The RSI is pushed above 60, which shows loss of the bearish momentum established during the development of the falling wedge. 

There is some near-term resistance at the 1310-1315 area, which contains the 200-period SMA for the 4H chart, and last week's high. 

(Gold 4H Chart 8/6)

If we get a pullback, the 1290-1295 level might be the last line of defense before bears take control again. If price can hold above this level and return north of 1300, the bullish outlook is valid, with upside risk toward the 1330-1335 area, which would likely meet a triangle resistance seen in the daily chart below. 

(Gold Daily Chart 8/6)

The daily chart also shows that the momentum could be turning bullish as the daily RSI held above 40 after previously tagging above 70. Price is also respecting the moving average cluster as support after it crossed over it in June. This is a "slingshot" signal for the bullish outlook. So, I would not be surprised if the market eventually break the triangle to the upside.

However, a decline below 1290 brings focus back to the 1280 low on the month, then the triangle support, which could be around 1270, coincident with some previous common supports in  April and May.