Overview
Gold (XAUUSD) on the 1-hour timeframe is reacting precisely off a major higher-timeframe resistance zone—the H4 Order Block (H4-OB) around the 4,100 – 4,120 level. After a recent upward push into this key supply area, price is showing strong signs of rejection, indicating a potential downside expansion toward recent sell-side liquidity.
Technical Breakdown (Smart Money Concepts / ICT)
Higher Timeframe Supply: Price tapped directly into the H4 Order Block (H4-OB) situated between 4,100 and 4,120. The sharp upper wick demonstrates heavy selling pressure and liquidity extraction at this zone.

Price Structure & Context:

Prior market structure showed a clear Point of Interest (Poi Point) around 4,010–4,020, leading to a strong bullish move, CHOCH (Change of Character), and subsequent structural breakouts.

A prior MSS (Market Structure Shift) led to the strong expansion into the current supply area.

Current Bias: Bearish Rejection. The recent candle wick into the H4-OB indicates that institutional sellers are defending this area, setting up a likely drop to grab sell-side liquidity resting at key support levels below.
Key Levels to Watch
Resistance Zone (Supply / Entry Area): 4,100 – 4,118 (H4-OB)

Immediate Support / Target: 4,050 (Sell-Side Liquidity / Local Swing Low)

Secondary Target: 4,020 – 4,000 (Poi Point / Major Demand Area)

Trade Idea / Execution Plan
Bias: Bearish / Short

Trigger: Look for lower timeframe (m5 / m15) market structure shifts or bearish engulfing candles rejecting the lower boundary of the H4-OB (~4,095–4,105).

Target: 4,050 (Primary Target marked on chart)