XAUUSD Long: After Fake Breakdown - $5,000 Back in Sight

Feb 3

Hello traders! Here’s a clear technical breakdown of XAUUSD (4H) based on the current chart structure. Gold has been trading within a well-defined bullish environment for an extended period, supported by a rising trend line that guided price action higher. During this phase, price consistently printed higher highs and higher lows, confirming strong buyer control. After breaking above a descending supply line, XAUUSD entered a consolidation phase, forming a clear range before eventually expanding to the upside. This expansion resulted in multiple bullish breakouts, culminating in a strong impulsive rally toward the 5,000 psychological level, where price reached a major pivot point and bullish momentum began to exhaust.

Currently, XAUUSD is consolidating above the Demand Zone around 4,770, indicating stabilization after the sharp correction. This area aligns with previous breakout structure and acts as a critical decision zone. As long as price holds above this demand, the broader bullish structure remains valid despite the recent volatility. The current rebound appears corrective, suggesting the market may be building strength for the next directional move rather than entering a sustained bearish trend.

My primary scenario favors a bullish continuation as long as XAUUSD remains above the 4,770 Demand Zone and continues to show acceptance above the reclaimed structure. A successful hold in this area could allow price to gradually rotate higher, targeting a retest of the 5,000 Supply Zone as the next upside objective. This level remains a major barrier, and a clean breakout with strong acceptance above 5,000 would open the door for further bullish expansion. Alternatively, a decisive breakdown and acceptance below the 4,770 Demand Zone would invalidate the bullish continuation scenario and signal a deeper corrective move toward the rising higher-timeframe trend line. For now, structure slightly favors buyers, with the demand zone acting as the key battlefield. Manage your risk!

Feb 4

Trade closed: target reached

As we expected, after a protracted correction, gold is slowly recovering its upward trend. The target has been reached.