XAUUSD – Bearish Setup Following Liquidity Trap and Channel Brea
Gold has confirmed a bearish setup after breaking down from the ascending trend channel and trapping buyers near 3,390.
Technical breakdown:
Price engineered a liquidity trap above equal highs, inducing breakout longs near 3,390.
The rejection from that level triggered a clear change of character (CHoCH) and subsequent breaks of structure (BOS) to the downside.
The ascending channel, respected since early June, has now been invalidated with strong bearish momentum.
Lower highs are forming beneath key supply zones around 3,340, reinforcing institutional sell pressure.
Bearish bias:
Price is currently retesting a minor supply zone with signs of weakness.
As long as price holds below 3,340, bearish continuation is likely.
Targeting the strong low at 3,261, followed by the next demand at 3,205 if momentum persists.
This setup reflects smart money principles: engineered liquidity, structure shift, and supply-driven order flow.
Invalidation:
A clean break and close above 3,390 with BOS to the upside would invalidate this setup.
Technical breakdown:
Price engineered a liquidity trap above equal highs, inducing breakout longs near 3,390.
The rejection from that level triggered a clear change of character (CHoCH) and subsequent breaks of structure (BOS) to the downside.
The ascending channel, respected since early June, has now been invalidated with strong bearish momentum.
Lower highs are forming beneath key supply zones around 3,340, reinforcing institutional sell pressure.
Bearish bias:
Price is currently retesting a minor supply zone with signs of weakness.
As long as price holds below 3,340, bearish continuation is likely.
Targeting the strong low at 3,261, followed by the next demand at 3,205 if momentum persists.
This setup reflects smart money principles: engineered liquidity, structure shift, and supply-driven order flow.
Invalidation:
A clean break and close above 3,390 with BOS to the upside would invalidate this setup.
Trade active
XAUUSD – Trade Update: Holding for 3,261 and 3,206 TargetsShort trade from 3,334 remains active.
Current price: 3,282
Floating profit: +520 pips
This position was taken after a clear liquidity sweep above 3,390, followed by a change of character and channel breakdown. Price has respected bearish order flow and continues forming lower highs.
Trade Management:
TP1: 3,261 – still active, structure supports continuation
TP2: 3,206 – extended target into untested demand
Stop loss now secured above recent lower high to lock in profit
No signs of bullish reversal; HTF structure remains bearish
Expecting continuation unless price reclaims above 3,340 with bullish structure shift.
Holding until TP objectives are met.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
💲𝗙𝗢𝗥𝗘𝗫 < 𝗚𝗢𝗟𝗗 > ₿ 𝗕𝗧𝗖 || Real Trades, Real Results 🧿 || 🚨 VIP Signals {My Personal Entries} 🔗Join Telegram – Trade smarter
t.me/JosProfessionalTrader
t.me/JosProfessionalTrader
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.