XAUUSD 1H: Two Short Scenarios From the Sell Zones AboveXAU/USD Spot - GoldFX:XAUUSDPINEDIGGAGold has been in a falling channel since the drop from 4,300 at the end of September. This week price pushed out of the top of it and is now sitting right under the first sell zone, around 4,195. So I'm watching two ways this can play out, both short. The levels Sell zone 1: 4,200 – 4,233 FVG: 4,227 – 4,254 (left from the big drop on the 28th, never filled) Sell zone 2: 4,255 – 4,320 Buy zone 1: 4,068 – 4,087 Buy zone 2: 3,985 – 4,012 (around the 4,000 round number) Scenario 1: rejection from sell zone 1 Price is already in the zone. If it gets rejected here and stays below 4,236, I expect a move back down to the top of the old channel, around 4,105 – 4,110. That is the first target. Invalidation: a clean 1h close above 4,236. Then the gap above is open, and that takes us to scenario 2. Scenario 2: fill the FVG first, then short If price dips to the channel retest first and bounces, the more likely path is up through the FVG and into sell zone 2, roughly 4,270 – 4,300. That is where I'd want to be short. A full move from there could reach the buy zones, first 4,068 – 4,087 and then 4,000. Invalidation: above 4,325. What would change my mind A strong close above 4,325 means the channel break was real and the bigger move down is off. Below that, I see both sell zones as places to look for shorts, not places to buy. I'm not entering blindly at the zone. I wait for a rejection on the lower timeframe first. If price runs straight through a level, the level is wrong, not the market. --- Not financial advice! No crystal ball! Eyes and my indicators only! Do your own research!