Gold Retests Order Block Zone, Bounce Setup Now In Focus

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Gold Retests Order Block Zone, Bounce Setup Now In FocusGoldOANDA:XAUUSDZenTrade_SetupThe 1H XAUUSD chart shows price coming full circle back to a key demand area after an extended rally and rejection. Following the Bullish trendline breakout confirmed near 4,005–4,025, gold advanced strongly through multiple BOS (Break of Structure) levels, eventually reaching a high near 4,163 — marked as a "Perfect rejection from the 0.5 Fibonacci level" at 4,165.686. Since that rejection, price has fully retraced, working back down through several FVG zones left behind during the rally, and has now returned directly into the original Order Block (OB) zone between roughly 4,005 and 4,025. This is the same area that supported the initial trendline breakout, making it a significant zone of confluence for a potential bounce. Currently trading at 4,019.035, down marginally on the session, price is sitting right within this OB zone, testing whether this level can once again act as valid support. This kind of full retracement back to a proven Order Block after a Fibonacci rejection is a textbook Smart Money Concepts setup, often preceding a renewed bullish leg if the zone holds. The projected path suggests a bounce from here, with price potentially working back up toward the 0.382 Fibonacci level near 4,119, before continuing to retest the 0.5 level and possibly pushing beyond the previous high. From a risk management perspective, the key invalidation level is a decisive break below the OB zone (under 4,005). Such a move would suggest the bullish structure has broken down and could open the door for a full retest of the Protected Swing Low near 3,968. For now, all eyes are on this OB retest — a bounce here would confirm continued bullish control, while a breakdown would shift the near-term bias lower. Do you think gold will bounce from this Order Block zone, or will we see a deeper break toward the swing low first?