The Gold Spot chart on the 1-hour timeframe clearly shows a medium-term bearish structure. After breaking out of the previous range, price entered a distribution phase followed by a decline. Following a reaction from the upper supply zone (red area) and failing to sustain higher levels, the market formed a series of lower highs, confirming a structured downtrend. Price has now reached a significant higher-timeframe demand zone (daily order block), highlighted in blue. This area represents the last stronghold for buyers, and the current reaction suggests an attempt to absorb liquidity and initiate a short-term correction.
However, unless the lower timeframe structure shifts, this move is still considered a pullback within a broader downtrend. The more probable scenario is that after a brief consolidation or minor correction, price may continue moving toward lower lows. A bullish shift would only be considered if price manages to reclaim and hold above the mid-range supply zone (4H FVG) and break the current structure. Overall, the current zone is a key decision point: either the start of a deeper correction or a continuation of the downtrend if the daily demand fails.
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