Moving across to the H4 chart it’s clear that some very interesting price action is forming. As a start, the yellow metal appears to be chalking up a D-leg of an bull pattern which completes around the 1230.0 mark. However, we would like for price to connect with the small, albeit powerful, H4 demand at 1224.6-1226.8 before looking to take a long position. Reason being is this area lurks within the extremes of both the buy zone (formed between the 127.2% and 161.8% extensions ), the extremes of the daily mentioned above at 1224.6-1238.3 and also comes close to weekly support at 1224.1. All in all a very tight area of confluence seen here!
Taking into account the above notes, our team has elected to place a pending buy order at 1227.7 with a stop-loss order below at 1221.0. As for take-profit targets, these will be dependent on the H4 approach to our buy zone.