XAUUSD – Liquidity Above, Pullback GoldOANDA:XAUUSDLA_Trader_FxXAUUSD – Liquidity Above, Pullback Before Expansion? Gold is still holding its bullish structure on H2. The market continues to print higher lows while respecting the rising trendline. Short-term momentum has slowed, but the structure itself has not been violated. That distinction is important. When momentum slows but structure holds, the market is usually building liquidity — not reversing. Market Structure Overview Higher low sequence remains intact. Trendline support is still respected. Internal minor structure shifts (MSS) appear, but no full breakdown. Price is currently compressing near the 0.786 Fibonacci retracement zone after reacting from the 1.0 expansion area. This suggests short-term balance rather than exhaustion. As long as the higher low holds, bullish continuation remains the dominant narrative. Key Technical Zones 1️⃣ 5040 Area – Major Buy Zone (Previous resistance + 0.5 Fibonacci retracement) This is the primary demand zone. If price pulls back into 5040: It aligns with Fibonacci 50%. It aligns with previous resistance flip. It sits below current trendline support. This area offers structural confluence for continuation entries. A clean reaction here would confirm buyers are still defending higher lows. 2️⃣ 5200 – 5240 Liquidity & Strong Buy Area There is visible liquidity resting above current consolidation. If price breaks upward first: Expect a liquidity sweep toward this zone. Momentum traders will be triggered. Short-term buy liquidity gets filled. However, strong buy liquidity zones often precede corrective moves. 3️⃣ Upper Sell Scalping Zone (~5280) If price expands aggressively upward, the area around 5280 becomes a potential short-term distribution zone. Not for swing reversal calls — but for controlled intraday scalps if exhaustion appears. Primary Scenario The market may take liquidity above first (5200–5240), then rotate lower toward the 5040 buy zone before the next expansion leg. This would: Clear buy-side liquidity. Reset momentum. Offer a better risk-to-reward continuation entry. The alternative scenario is a direct pullback into 5040 without sweeping highs first. In both cases, 5040 remains the structural decision level. Invalidation A decisive break below 5040 invalidates the current higher low sequence. If that happens, bullish structure on H2 weakens significantly and the narrative shifts from continuation to correction. Until that occurs, pullbacks remain opportunities — not reasons to panic. Follow for structured entries — defined risk — and calculated edge.