XAUUSD: Is Gold Preparing for a Bullish Rally?GoldOANDA:XAUUSDWrightWayInvestmentsIs Gold preparing to shake out the last remaining buyers before its next major rally? While many traders are focused on Gold's recent bearish momentum, I'm watching something much more interesting: the potential formation of a major bullish reversal from a high-confluence demand zone. My overall outlook is BULLISH, but I believe price could first sweep nearby liquidity before beginning its next significant move upward. 🔍 1. Market Structure — A Potential Turning Point Following Gold's decline from the $4,695 region, price has continued forming lower highs and lower lows. However, the market is now approaching a previously established support area that helped initiate the strong August rally. This raises an interesting possibility: Could the current decline be a deeper correction rather than the beginning of a sustained bearish trend? My bullish thesis centers on buyers defending this region and eventually establishing a higher low, followed by a bullish break of structure (BOS). 📐 2. Fibonacci — Deep Retracement, Potential Opportunity The Fibonacci retracement provides additional confluence. 📍 0.62 Fib: $4,228 📍 0.79 Fib: $4,099 📍 1.00 Fib: $3,941 Gold is currently testing the deeper portion of its retracement near the 0.79 level. Deep Fibonacci retracements can produce strong reversals, particularly when they overlap with historical support and liquidity. I am watching for a reaction between $4,050 and $4,100, with the possibility of a deeper liquidity sweep toward $3,941. 💧 3. Liquidity — Could This Be the Final Shakeout? The recent lows have created an important area of potential sell-side liquidity. A move beneath those lows could trigger stop-loss orders and breakout selling before buyers regain control. My ideal scenario: ✅ Price sweeps liquidity beneath recent lows. ✅ Buyers defend the highlighted demand region. ✅ A strong bullish rejection candle develops. ✅ Price breaks above a recent lower high. ✅ Bullish momentum expands toward higher Fibonacci levels. A liquidity sweep is only a possibility, not confirmation of institutional accumulation. 📊 4. RSI & Moving Averages RSI is approaching the lower portion of its recent range, suggesting bearish momentum may be weakening. However, RSI remains below 50, and Gold continues trading beneath its short-term EMAs. I will be watching for bullish divergence, an EMA reclaim, and a shift in price structure to confirm that buyers are taking control. 🎯 5. My Bullish Price Targets If the reversal develops successfully, these are the potential upside objectives: 🎯 TP1: $4,228 — 0.62 Fibonacci 🎯 TP2: $4,318 — 0.50 Fibonacci 🎯 TP3: $4,407 — 0.382 Fibonacci 🎯 TP4: $4,517 — 0.236 Fibonacci 🚀 Extended Target: $4,695 — Previous major swing high ⚠️ What Invalidates My Bullish Outlook? A decisive breakdown beneath the major $3,941 support region, followed by acceptance below it, would significantly weaken my bullish reversal thesis and expose the $3,866 Fibonacci extension. 🧠 Final Thoughts My bias is BULLISH. My strategy is PATIENCE. I believe Gold is approaching a location where the risk/reward profile of a confirmed bullish setup could become increasingly attractive. I am not looking to blindly catch a falling knife. I am looking for the market to demonstrate that sellers are losing control and buyers are ready to step back in. The biggest opportunities often develop when the market appears weakest—but confirmation is what separates analysis from speculation. 💬 What do you think? Is Gold preparing for a bullish reversal, or will sellers break through demand? — WrightWayInvestments