XAUUSD H1 SMC Analysis: Strong BOS Targets Premium Liquidity

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XAUUSD H1 SMC Analysis: Strong BOS Targets Premium LiquidityGoldOANDA:XAUUSDNick_TitanInsightThe H1 chart of XAUUSD displays a powerful bullish continuation following a major structural break under Smart Money Concepts. After consolidating and sweeping sell-side liquidity below the 4,000 baseline, institutional order flow generated aggressive momentum, pushing price upward and completing a significant Break of Structure (BOS) above the key 4,100 supply level. Currently trading around 4,134.865, price has tapped into the higher-timeframe Fair Value Gap (FVG) resting between 4,120 and 4,140. This impulsive rally demonstrates decisive buyer dominance, effectively clearing resting buy-side liquidity. However, given the extended nature of this move into a prominent supply zone, a healthy corrective pullback is anticipated before the next leg higher unfolds. According to the projected structural path, price is expected to undergo a temporary rejection from the 4,140 resistance area, inducing a deeper retracement to mitigate discount demand zones. The key interest area for potential re-entries lies within the 4,050–4,080 region, where breached structural levels and lower FVGs now act as flipped support. A corrective retest into these discounted levels will serve to rebalance market inefficiencies and engineer liquidity for bullish continuation. Once this mitigation process is complete, the market is well-positioned to resume its upward expansion toward major premium liquidity targets. The long-term objective remains the swing high supply cluster near 4,201.856. Traders should exercise patience and monitor lower timeframes (M5/M15) for a confirmed Change of Character (ChoCH) within the 4,050–4,080 demand zone before seeking long executions. The bullish outlook remains firmly intact as long as price holds above the major structural higher low at 4,022.286. A sustained H1 close below this level would invalidate the immediate bullish momentum.