GOLD – 4H | Bearish Divergence – Pullback or Continuation?Gold ( OANDA:XAUUSD ) remains in a broader uptrend on the 4H timeframe, printing higher highs and higher lows while respecting the ascending channel structure. However, recent price action suggests the upside momentum may be weakening near a key resistance zone at 4640.
Price is currently consolidating between 4640 and 4570, showing clear signs of accumulation. At the same time, a bearish divergence on RSI is visible, indicating declining momentum despite price holding near highs. This divergence aligns with a rising wedge formation, which often precedes corrective or reversal moves when it appears late in an uptrend.
From a structure perspective, the market is approaching a decision point.
A clean break and 4H close above the 4650 zone would invalidate the immediate bearish setup and could open the path toward the 4700 area.
On the downside, a 4H close below 4570, accompanied by a clear breakdown from the accumulation range, would confirm weakness and expose 4500, with room for further downside.
Adding to the confluence, the higher-timeframe structure also shows a bearish harmonic AB=CD pattern, reinforcing the idea of a potential pullback or corrective phase..
Fundamentally, gold remains strong overall, but from a technical standpoint, a pullback within the trend appears increasingly likely.
Watching price action closely for confirmation.
Bias remains short-term bearish unless invalidated.
