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XAUUSD approaching resistance, potential drop!

XAUUSD is approaching our first resistance at 1271.53 (horizontal overlap resistance, 23.6%, 38.2% Fibonacci retracement, 100% Fibonacci extension) and a strong reaction might occur below this level pushing price down to our major support at 1217.58 (horizontal overlap support, 61.8% Fibonacci retracement). A breakout below our intermediate support at 1242.57 (horizontal swing low support, 50% Fibonacci retracement) might provide the bearish acceleration to our major support target.
Stochastic (89, 5, 3) is also reacting off our resistance and we might see a corresponding drop in price.
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