XAUUSD respected the marked reversal zone perfectly after a strong bearish move. Price reacted sharply from the demand area and started showing bullish intent on the 30M timeframe.
Currently, I’m watching for continuation toward the upside as long as price holds above the highlighted support zone. The rejection from the lows indicates buyers are stepping in and attempting to shift short-term momentum.
My trading plan is to wait for confirmation through a bullish candlestick pattern such as a bullish engulfing, strong rejection candle, or higher-low formation before entering aggressively.
If momentum continues, this setup offers a potential 1:2 to 1:3 risk-reward opportunity targeting the next resistance/supply area above. Risk remains invalidated if price closes back below the marked demand zone.
Patience and confirmation are key — waiting for clean price action around the level increases the probability of a high-quality entry.