XAUUSD H4: 4,240 Holds the Recovery Story

XAUUSD H4: 4,240 Holds the Recovery Story Market Context Gold is trading around 4,349 after a strong correction from the recent high area. The market is no longer in clean bullish continuation mode. Price has failed to hold the upper structure and is now moving below the short-term descending pressure line. This shows that sellers are still active, especially after the rejection from the higher zone. However, the bigger recovery structure has not fully broken yet. Gold is still trading above the rising HTF trendline and above the main bullish demand area. That means the market is in a decision phase, not a confirmed bearish collapse. Technical Structure On the H4 chart, gold created a strong bullish leg from the July-August base, but the latest movement shows a clear slowdown. Price rejected from the upper zone and is now trading below the OB / FVG Sell Order area. The first important resistance is around 4,400 - 4,460. If gold rebounds into this area and fails, sellers may use it to continue the correction. Above that, 4,511 remains the buy-side liquidity level. A clean break above 4,511 would be the first sign that buyers are regaining control. Below current price, the most important area is the OB Buy Zone around 4,240 - 4,260. This zone also sits close to the rising trendline, making it a major decision area for the next move. If buyers defend 4,240 - 4,260, gold may form a higher-low reaction and recover back toward 4,400 - 4,460. But if this zone breaks, the next deeper support is the Strong OB around 4,080 - 4,110. Key Levels Current Price: 4,349 Short-term Liquidity: 4,293 Main OB Buy Zone: 4,240 - 4,260 Strong OB Support: 4,080 - 4,110 OB / FVG Sell Order: 4,400 - 4,460 Buy-side Liquidity: 4,511 Bullish Confirmation: Above 4,511 Bearish Continuation: Below 4,240 Trading Plan Primary Buy Reaction Entry: 4,240 - 4,260 after bullish confirmation SL: Below 4,200 TP: 4,293 / 4,400 / 4,460 Condition: Price must sweep into the OB Buy Zone and show a strong bullish reaction. This is the main area where buyers need to defend the recovery structure. Primary Sell Scenario Entry: 4,400 - 4,460 after bearish confirmation SL: Above 4,511 TP: 4,293 / 4,260 / 4,240 Condition: If gold rebounds into the OB / FVG Sell Order zone and fails to break higher, sellers may return and push price back toward the main buy area. Breakout Buy Scenario Entry: Above 4,511 after breakout and retest SL: Below 4,460 TP: 4,560 / 4,600 / 4,650 Condition: Buyers must break above the buy-side liquidity level and hold it. Only then does the short-term bearish pressure begin to weaken. Breakdown Sell Scenario Entry: Below 4,240 after breakdown and retest SL: Above 4,293 TP: 4,180 / 4,110 / 4,080 Condition: Gold loses the OB Buy Zone and fails to reclaim it. This would confirm that the recovery structure is broken and the market may rotate into deeper demand. Overall Bias Gold is under short-term bearish pressure, but the larger recovery is not dead yet. The key battle is between 4,400 - 4,460 resistance and 4,240 - 4,260 support. If gold rejects from the sell order zone, the next target is the OB Buy Zone around 4,240. If buyers defend that zone, the recovery can restart. But if 4,240 breaks, sellers may drag price toward 4,080 - 4,110. Best approach: do not chase the market in the middle. Wait for price to either react clearly from 4,240 - 4,260 or reject from 4,400 - 4,460. Will buyers defend 4,240 and rebuild the recovery, or will sellers break the structure and send gold deeper?