How is the current gold price trend evaluated in technical analysis?

The four-hour gold structure remains bullish after a change of character. While it reached the liquidity target of 4,375-4,385, it has entered a sensitive phase where a correction is likely.

What are the key support zones for buyers if a correction occurs?

The 4,230-4,245 range is the primary reaction zone. If the correction deepens, the 4,105-4,125 zone, which contains a Fair Value Gap (FVG), will be the next area of interest.

Gold Technical Analysis: The Bullish Rally Faces Its First Real Test

Gold has demonstrated remarkable strength over the past few days. After successfully defending the support zone between 4,020 and 4,040, the price shifted its structure and surged toward the Buy-Side Liquidity (BSL) level in the 4,375 to 4,385 range. However, the gold chart has now entered a more intriguing and critical phase.

Analyzing Market Liquidity and Structure

The price has reached the liquidity pool resting above previous highs. Rather than assuming the bullish trend will continue without interruption, I am focusing on how the price reacts following this liquidity sweep. For deeper insights, you can review the latest relevant market headlines.

Key Observations:

The four-hour (H4) structure remains bullish following the Change of Character (CHoCH).
The external liquidity target in the 4,375–4,385 range has been achieved.
The current bullish wave has extended, increasing the likelihood of a corrective phase.
The 4,230–4,245 zone now serves as my primary area for potential price reaction.
In the event of a deeper correction, the 4,105–4,125 Fair Value Gap (FVG) will be the next area of interest.

Trading Strategy and Outlook

Although the overall market structure remains bullish, I prefer to witness a retracement before considering further expansion. To better understand these concepts, our educational analysis reports can provide valuable guidance. The central question remains: will the 4,230–4,245 range attract buyers, or will the price seek liquidity at lower levels?

I avoid chasing emotional market moves and prefer waiting for the market to define its defensive structure. According to the official news source, the bullish structure remains valid as long as the 4,020–4,040 support holds. Any sustained break below this level would fundamentally alter the current market narrative.

The Primary Test for Gold

Moving toward 4,380 was the easy part of the analysis; however, the most interesting phase begins now after the liquidity sweep. I am closely monitoring the price reaction in the 4,230–4,245 zone to determine if this represents a healthy correction within a bullish structure or the start of a deeper bearish trend. Let the market’s reaction reveal the next chapter of the trend.