Gold (XAUUSD) – 4H | Trend Continuation Setup

Gold remains in a clear 4H downtrend, and recent price action suggests a continuation move lower is likely.

After a strong impulsive drop, price printed a corrective move to the upside. This retracement has now stalled at a key confluence zone:
• 0.618 Fibonacci extension (-0.618) rejection
• Descending trendline resistance respected
• Prior structure acting as resistance

The rejection at this level is important. It shows sellers are still in control and willing to defend higher prices.

Price has already reacted once from the trendline. A second retest remains possible, which would offer a cleaner entry, but the current structure already supports downside continuation.

Bias: Bearish

Scenario:
• Short-term bounce or consolidation
• Potential retest of trendline / local resistance
• Continuation move lower into support

Targets:
• TP1: ~4,570 (previous support zone)
• TP2: ~4,200 (deeper structure + Fibonacci alignment)

Invalidation:
• Strong close above the trendline and recent highs would weaken the setup

Summary:
This is a classic continuation setup:
trend → impulse → correction → rejection → continuation.

The confluence between Fibonacci, structure, and trendline gives this idea weight. Now it’s about timing the entry around confirmation or a cleaner retest.