Gold Technical Analysis: Corrective rally set to gather steam

• Gold's hourly chart shows a bull flag breakout - a bullish continuation pattern, which indicates the corrective rally from the recent low of $1,237 is set to gather steam. 
• The flag breakout has opened the doors to $1,282 (target as per the measured height method). 
• The pattern also validates last Tuesday's bullish outside day candle and bullish crossover between the 5-day moving average (MA) and 10-day MA. 

Hourly chart

Spot Rate: $1,258

Daily High: $1,258

Daily Low: $1,254

Trend: Bullish

Resistance

R1: $1,261 (July 4 high)

R2: $1,274 (23.6% of recent sell-off)

R3: $1,282 (May 21 low)

Support

S1: $1,254 (session low)

S2: $1,244 (June 28 low)

S3: $1,237 (July 3 low)