Gold has delivered a massive impulsive expansion on the H1 timeframe, driving straight into the overhead supply zone and sweeping Buy-Side Liquidity around the 4,520 – 4,550 region.
Following this aggressive run, price is showing signs of rejection at resistance, leaving behind a significant liquidity imbalance (Fair Value Gap – FVG) below.
Technical Breakdown & SMC Key Levels
Resistance & Buy-Side Liquidity: 4,520 – 4,550 (Price tapped the top of the range and is rejecting).
Target Imbalance (FVG): 4,375 – 4,425 (Unmitigated inefficiency created by the strong upward displacement).
Demand Zone + Bullish Order Block (OB): 4,310 – 4,330 (Key structural base).
Macro Support & Sell-Side Liquidity: 4,220 – 4,240.
Execution Plan & Scenarios
Primary Scenario (Bearish Retracement to FVG):
Setup: A confirmed lower-timeframe shift (m5/m15 CHoCH) below 4,510 confirms distribution.
Target: Wave-down correction into the H1 FVG zone between 4,425 and 4,375.
Invalidation: Sustained H1 candle body close above 4,550.
Secondary Scenario (Bullish Expansion):
If buyers absorb selling pressure and print a clean break above 4,550, the bearish retracement idea is invalidated, targeting fresh liquidity pools above.
Risk Note:
Always wait for confirmation triggers before entering counter-trend pullbacks. Manage your position sizing carefully.
đź’¬ Are you shorting the pullback into the FVG, or waiting to buy the dip around 4,400? Let’s discuss in the comments below!
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