XAUUSD — 4,040 Is the Trap Zone GoldOANDA:XAUUSDFelix_MacroTradeXAUUSD — 4,040 Is the Trap Zone Gold is getting a small bounce from the lows, but this is exactly the kind of move I would be careful with. Price has been travelling inside a wider bearish channel, and every recovery has looked more like the market lifting its head for air before sellers step in again. The latest bounce from the 3,980 - 3,995 area is interesting, but it has not changed the bigger story yet. Gold is still sitting near monthly lows, and the structure is still showing lower highs inside the channel. For newer traders, the key is not just that price is bouncing. The key is where it is bouncing into. Right now, gold is moving back toward the supply zone around 4,030 - 4,045. That area is where I think late buyers may get tested. If price climbs into that zone and starts rejecting, it would look like smart money is using the bounce to reload sellers, not to build a clean bullish reversal. My main view is bearish while gold stays below the supply zone. The broader pressure still supports that idea: oil-driven inflation concerns, US-Iran tension, and higher-for-longer Fed expectations can keep the USD supported, which makes gold’s recovery harder to trust. If price rejects from 4,030 - 4,045 and breaks back below the small range near 3,980 - 3,995, the next liquidity pocket I would watch is 3,960.275 first. If that level fails, the lower channel area near 3,920 can become the next magnet. This bearish idea only becomes weaker if gold reclaims 4,045 cleanly and holds above the supply zone. That would tell me sellers failed to defend the trap area. Key price zones to watch Current reaction area: 3,980 - 3,995 Main supply / trap zone: 4,030 - 4,045 Bearish confirmation zone: clean break below 3,980 First downside liquidity target: 3,960.275 Main downside channel target: 3,920 - 3,930 Upper resistance if sellers fail: 4,045 - 4,060 Major upside liquidity: 4,138.553 Invalidation: clean reclaim above 4,045 and hold Do you see this bounce as real strength, or just a pullback into supply before gold hunts 3,960 again?