Hello everyone, after the sharp decline late last week, gold (XAU/USD) continues to face selling pressure and is currently trading around $3,977, down more than 3% in just two sessions. This is the strongest correction in the past three weeks and has put the market into a defensive phase as price approaches the key psychological support zone at $4,000.

Observing the chart, we can see selling momentum is slowing as price nears the lower Fair Value Gap (FVG) at $3,950 - $3,970. This is an unfinished liquidity zone as well as an important technical support area where buyers may attempt a short-term reaction.

The scenario I favour at the moment is a liquidity sweep toward the $3,950 - $3,970 area before a technical rebound takes place. The nearest resistance to watch lies at $4,100 - $4,200, where multiple FVG clusters and potential selling pressure exist.

trade safe always❤️