Gold May Rebound First — But The Downtrend Is Not Done Yet

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Gold is sitting near recent lows ahead of FOMC, but the current structure suggests this move may not continue straight down without a reaction first.

After the aggressive selloff, price is now stabilizing around the 4865 area, forming a short-term base while leaving a clear H1 imbalance (FVG) above.

👉 This opens the door for a potential recovery move before the next decision.

📉 Technical Structure
Market remains inside a clear downtrend channel

Lower highs are still being respected

No structural break to the upside yet

The recent drop is impulsive, which usually leads to a retracement phase before continuation.

⚖️ Expected Price Behavior (FOMC Plan)
The current setup favors a two-phase move:

Phase 1 — Recovery (FOMC reaction):
Price may push higher to fill the FVG and rebalance the inefficiency
→ Likely driven by volatility during the news release

Phase 2 — Rejection & Continuation:
If price reacts at the trendline resistance + 4900 zone,
→ Sellers could step back in
→ Leading to continuation lower toward 4830 and below

🧠 Market Insight
This is a classic liquidity + imbalance play:

Selloff creates inefficiency

Market retraces to rebalance

Trend resumes from higher levels

FOMC often acts as the catalyst for this type of move.

⚠️ Final Thought

The key is not the initial move —
👉 but the reaction at resistance.

If gold fails to break above the trendline,
the broader bearish structure remains in control.

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