XAUUSD H1: Gold Faces a Critical Retest — Can 4050 Hold?

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XAUUSD H1: Gold Faces a Critical Retest — Can 4050 Hold?GoldOANDA:XAUUSDRichard_PrimeInsightsGold has delivered an impressive bullish recovery, climbing from the 3880 support region toward 4145. But after such a strong upward move, the next question is no longer simply how high gold can go. It is whether buyers can defend the newly established support zones when the market begins to pull back. Looking at the H1 structure, buyers have successfully created a bullish Break of Structure (BOS), shifting short-term momentum in their favor. However, price is now approaching the upper region of the recent expansion, where profit-taking and selling pressure could trigger a correction. I am particularly interested in the relationship between the 4095–4120 FVG, the 4060–4070 Order Block, and the 4035–4050 POC + Supply Zone. These areas could determine whether the current rally continues or develops into a deeper retracement. 📍 THE THREE ZONES THAT MATTER 4140–4150: Recent high and immediate resistance. 4095–4120: FVG and first potential pullback area. 4060–4070: Order Block and secondary support. 4035–4050: POC + Supply Zone and major decision area. 3935–3950: Lower Order Block. 3870–3890: Strong Support + Liquidity. 🔴 SCENARIO 1 — SHORT FROM THE CURRENT HIGH My first scenario is a rejection around 4135–4145. After the strong bullish expansion, price may struggle to extend higher immediately. If M15 forms a bearish CHoCH in this area, I will consider a corrective move toward the lower support zones. ENTRY: 4135–4140 STOP LOSS: 4155 TAKE PROFIT 1: 4120 TAKE PROFIT 2: 4070 TAKE PROFIT 3: 4050 Confirmation: A bearish M15 CHoCH followed by a failed retest. Invalidation: A sustained H1 close above 4150. 🟢 SCENARIO 2 — LONG FROM THE FVG What if the pullback stops at the FVG? The 4095–4120 area is the first zone where I want to see buyers defend the recent bullish expansion. I will not enter simply because price touches the FVG. I want a liquidity reaction, followed by a bullish M15 CHoCH and a successful retest. ENTRY: 4100–4105 STOP LOSS: 4085 TAKE PROFIT 1: 4120 TAKE PROFIT 2: 4140 TAKE PROFIT 3: 4155 Invalidation: An H1 close below 4095 with no immediate recovery. 🔴 SCENARIO 3 — SHORT AFTER THE ORDER BLOCK BREAKDOWN If buyers fail to defend the FVG and price breaks below 4060, the next important question is whether the 4060–4070 Order Block becomes resistance. My condition is an H1 close below 4060, followed by a failed retest from underneath. ENTRY: 4055–4060 STOP LOSS: 4075 TAKE PROFIT 1: 4050 TAKE PROFIT 2: 4040 TAKE PROFIT 3: 3980 This scenario requires a confirmed breakdown. A quick recovery above 4070 would cancel the idea. 🟢 SCENARIO 4 — LONG FROM THE POC + SUPPLY ZONE This is the deeper pullback scenario I do not want to overlook. The 4035–4050 area combines POC and a supply zone that could become a decision point if price retraces further. If gold sweeps liquidity below 4035, reclaims the zone, and forms a bullish M15 CHoCH, I will consider a recovery setup. ENTRY: 4040–4045 STOP LOSS: 4025 TAKE PROFIT 1: 4070 TAKE PROFIT 2: 4100 TAKE PROFIT 3: 4120 Invalidation: An H1 close below 4035 followed by a failed recovery. 🦁 MY H1 BIAS The latest BOS confirms that buyers have regained short-term structural strength. Therefore, my broader H1 outlook remains cautiously bullish while price holds above 4035. However, I do not want to confuse a strong rally with an uninterrupted upward move. My preferred path is a correction toward 4070, followed by a recovery toward 4120. If that recovery loses momentum, the 4035–4050 POC + Supply Zone becomes the next important area to watch. A clean break below 4035 would weaken the bullish outlook and bring the lower support zones back into focus. The key is not to predict every movement. It is to identify where the market confirms or invalidates each scenario. ⚠️ All entries are conditional trading plans, not confirmed trade signals. Wait for the specified price-action confirmation, calculate your risk before entering, and avoid chasing extended candles. 💬 One question for the community: Will gold complete its pullback toward 4070 before making another attempt at 4140, or are we about to see a deeper correction toward 4050? Share your H1 perspective below. Let's compare our market reads.