Gold is approaching an important supply zone, where sellers may return to the market. It is possible that the current bullish momentum will extend slightly higher to sweep away liquidity before a bearish reversal develops.
Market forecast
🔹 The price is trading towards the distinct bid/offer zone.
🔹 A liquidity sweep above the recent highs before rejection is possible.
🔹 Wait for a confirmed bearish CHoCH/BOS or a strong rejection candle to appear before considering short trades.
🎯 Downside target: support area 3980–3960.
❌ Invalidation: A strong H1 candle closing above the supply zone would weaken the bearish outlook.
Trading Note: Patience is key – let the market confirm the reversal before entering a sell trade. Always use appropriate risk management.
Caption (Telegram/TradingView):
XAUUSD H1: Price is testing a key distinct supply area. A liquidity grab followed by a bearish confirmation could open the way towards a key support area. Wait for confirmation before entering. 📉
