XAUUSD 2-Hour Chart: Bullish Reversal Confirmed, New Highs Tested, Gold (XAUUSD) Breaks Out to New Highs

2026-01-20

XAUUSD has staged a powerful bullish reversal, breaking out of its previous consolidation and rallying sharply to a new high of 4,757.83. The price is currently at 4,751.05, up +1.69% on the session, confirming strong buying momentum.

 

· Support: The previous resistance zone near 4,700.00 now acts as primary support, followed by the significant swing low at 4,604.24.

· Resistance: Immediate resistance is at the new high 4,757.83. The next psychological level is 4,800.00.

· Major Zone: The 4,700 – 4,720 area is now a key bullish support zone. The breakout above the previous head high (~4,740) invalidates the prior H&S pattern.

· High/Low: Current High = 4,757.83, Recent Major Low = 4,538.42.

· Buy Zone: Dips towards 4,720 – 4,700 offer potential long entries, targeting a move towards 4,780 – 4,800, with a stop below 4,680.

· Sell Zone: Short setups are only viable on a rejection and close back below 4,700, targeting a retest of 4,650 – 4,630.

 

The surge has broken the structure of the prior potential topping pattern. The bias remains bullish while price holds above the 4,700 breakout level. Monitor for continuation or a pullback to retest the new support.