8% Pullback in Gold – Is the Reversal In or More Pain Ahead?

Gold has broken below the key support/resistance zone (Monday Low).

Here's what to watch next:

✅ Bullish Scenario (Green Arrow)

If price reclaims the Monday Low and forms a deviation (fake breakdown), we could see a recovery move. With gold having retraced nearly 8%, there's potential for a strong rebound.

⚠️ Bearish Scenario (Red Arrow)

If price fails to reclaim the Monday Low and continues down, we may see further downside toward the midrange level. A break below that opens the door to a drop toward the previous month’s low.

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🔍 Strategy Notes:

* All key ranges have been mapped for you.
* Consider marking quarter ranges on lower timeframes for more precise entries and exits.
* Trade level-to-level:

* If a level breaks, target the next.
* Take partial profits at each key level.
* Use these S/R zones as invalidation points to manage risk.

Follow for trading setups.