XAU/USD 1H Technical Breakdown – Structure Shift in Progress

This chart captures a clear market structure transition on Gold’s 1-hour timeframe, highlighting a shift from bullish momentum to a potential bearish phase.

🔍 Key Observations:
Uptrend Structure:
Price had been respecting a bullish channel with a sequence of Higher Highs (HH) and Higher Lows (HL), showing strong bullish momentum.

Break of Structure (BOS):
The bullish market structure was invalidated when price broke below the most recent Higher Low, marking a Break of Structure (BOS). This signals the end of the uptrend and beginning of possible bearish control.

CHoCH (Change of Character):
Before the BOS, price failed to make a new HH and began forming lower highs — this internal shift hinted at weakness and can be considered the Change of Character, occurring subtly before the BOS.

Bearish Projection:
Price is expected to retest the broken structure (potential lower high formation) and continue dropping toward the demand zone (green box) around $3,330 - $3,340.

Supply Zone Above:
The upper green zone marks a supply region, from where the bearish rejection initiated, reinforcing the bearish bias.

✅ Conclusion:
This is a textbook example of a trend reversal setup:

CHoCH ➤ BOS ➤ Pullback ➤ Continuation.
Traders may watch for short opportunities after a bearish retest, with the green demand zone below as a potential take-profit area.