Gold H4 Maintains Bullish Structure as Wave (4) Pullback Targets Swap Zone 

Introduction

Gold (XAU/USD) continues to trade within a bullish medium-term structure despite the recent pullback from its latest swing high. The current price action suggests that the market is developing a healthy Wave (4) correction after completing an impulsive Wave (3), with the highlighted swap zone expected to provide strong support before the next bullish advance.

The Elliott Wave structure and Fibonacci confluence continue to favour buyers as long as the swap zone remains intact.

Wave (4) Correction Currently in Progress

After completing a strong five-wave impulsive rally from the recent bottom, Gold appears to have entered its corrective phase.

The current decline is expected to form Wave (4), which is projected to retrace toward the highlighted swap zone. This area coincides with the 161.8% Fibonacci projection and previous breakout resistance that has now become support.

A successful defense of this level would confirm the correction remains healthy within the larger bullish trend.

Swap Zone Becomes Key Support

The highlighted swap zone represents the most important technical level in the current market structure.

Several technical factors converge at this area:

• Previous resistance becoming new support.

• Fibonacci confluence.

• Elliott Wave Wave (4) completion area.

• Strong demand zone where buyers may re-enter the market.

As long as Gold holds above this support, the bullish outlook remains valid.

Wave (5) Could Resume the Uptrend

Once Wave (4) is completed, Gold is expected to begin Wave (5), potentially extending toward the highlighted green target zone.

Wave (5) would complete the current impulsive cycle and could retest or exceed the previous swing high if buying momentum strengthens.

The Awesome Oscillator is also showing signs of weakening bearish momentum, suggesting that selling pressure may be gradually fading during the correction.

Trading Outlook

The preferred scenario is for Gold to complete its Wave (4) correction inside the swap zone before attracting fresh buying interest.

Traders should monitor bullish reversal candlestick patterns and momentum confirmation around the highlighted support. A strong rejection from this area would provide confirmation that Wave (5) has begun.

However, a decisive break below the swap zone would invalidate the current bullish wave count and increase the probability of a deeper corrective decline.

Conclusion

Gold remains technically bullish despite the ongoing correction. The current pullback appears to be a normal Wave (4) retracement rather than a trend reversal. As long as the swap zone continues to hold as support, the probability remains high for Gold to resume its bullish momentum and advance toward the projected Wave (5) target in the coming sessions.