XAUUSD H4 – Correction, then Expansion

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XAUUSD H4 – Pullback Then Continuation Using Fibonacci and Key Levels

Gold remains in a strong bullish trend on H4, but the current structure suggests the market needs a pullback into liquidity before the next expansion leg.

Market View

The recent rally has pushed price into premium territory, which often triggers short-term profit-taking.

Fibonacci extensions are acting as liquidity magnets: 2.618 is a key reaction zone, while 3.618 is the next expansion target.

Main approach: wait for the pullback into support/buy zones, then follow the trend.

Key Levels to Watch

Near resistance: 4546–4550 (reaction zone / key resistance)

Sell reaction zone: 4632–4637 (Fibonacci 2.618, likely to cause volatility)

Expansion target: 4707 (Fibonacci 3.618)

Buy liquidity zone: 4445–4449 (best buy area in this structure)

Strong support: 4408 (critical defensive support)

Scenario 1 – Shallow Pullback, Then Push Higher

Idea: price pulls back lightly, holds structure, and resumes the uptrend quickly.

Preferred pullback zone: 4546–4550

Expectation: move back up toward 4632–4637, and if absorbed, extend toward 4707

Confirmation to watch: H4 candles hold above 4546–4550 with clear buying response (rejection wicks, strong closes, momentum return)

Scenario 2 – Deeper Pullback to Sweep Liquidity, Then Strong Rally

Idea: price sweeps deeper into the best demand zone before the next major leg.

Deep pullback zone: 4445–4449

Expectation: bounce back to 4546–4550 → then push to 4632–4637 → and potentially extend to 4707

Confirmation to watch: strong reaction at 4445–4449 (buyers absorb, structure holds, no clean breakdown)

Important Notes

4632–4637 is a sensitive zone where profit-taking and sharp swings can appear before continuation.

If price breaks and holds below 4445–4449, shift focus to 4408 to judge whether the bullish structure is still being defended.

Conclusion

The main trend is still bullish, but the best edge comes from waiting for a pullback and buying at key levels. Focus zones: 4546–4550 (shallow pullback) and 4445–4449 (deep pullback with better R:R). If Fibonacci expansion continues, the next upside target is 4707.

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