Chart the Market (09/05/2025)

XAUUSD, H4: 

Gold prices surged at the start of the week, breaking above previous resistance near the $3,350 level and briefly touching all-time highs around $3,490. However, the rally quickly lost steam as a shift in market sentiment—driven by underlying fundamentals—triggered a sharp pullback. The subsequent decline erased earlier gains and signaled a bearish reversal, reinforced by the formation of a bearish engulfing pattern on the chart.

The precious metal has now fallen into a fair value gap (FVG) created during the initial surge. Failure to hold above this zone would serve as further confirmation that bearish momentum is gaining control, potentially accelerating the current downtrend.

Momentum indicators are aligning with this bearish narrative. The RSI has slipped decisively from the overbought zone, while the MACD has formed a bearish crossover above the zero line and is now trending downward. If the MACD breaks below zero, it would underscore the fading bullish momentum and strengthen the case for further downside in gold prices.

Resistance Levels: 3315.80, 3363.25

Support Levels: 3276.00, 3222.90

GBPUSD, H4

The GBP/USD pair is flashing renewed bearish signals after decisively breaking below the short-term support at 1.3255—a level that had previously underpinned the pair. This breakdown confirms the broader lower-high structure, reinforcing a bearish technical bias.

However, a doji candlestick formed in the most recent session signals indecision in the market, suggesting that a short-term trend reversal cannot be ruled out. Traders may remain cautious until further price confirmation emerges.

Momentum indicators lean cautiously toward the bearish side. The RSI is trending in a lower-high pattern and hovering near the 50 level, indicating weakening bullish momentum. Meanwhile, the MACD remains near the zero line, reflecting a neutral stance but suggesting that prior bullish momentum has dissipated.

If the pair fails to reclaim support above 1.3255, downside risks may persist, with the next support zone likely eyed near the 1.3170 level.

Resistance Levels: 1.3290, 1.3420

Support Levels: 1.3160, 1.3000