XAUUSD MARKET ANALYSIS

 Good morning traders, I hope you're all well and had a great weekend charged up and ready for this new trading week. Into the markets today I'm looking at XAUUSD where price dropped into a major H1 & H4 demand zone at 1823.91 & 1807.90 which is the origin of the previous major rally to the key H1 & H4 supply zone at 1956.45 & 1947.09. Price filled the major H4 range from the major H1 & H4 demand zone at 1823.91 & 1807.90 to the key H1 & H4 supply zone at 1956.45 & 1947.09 and back to the major H1 & H4 demand zone. Price dropped into the H1 & H4 demand and formed a rejection wick with candle closes inside demand followed by a H1 bullish engulfing candle and a slight rally to 1812.00 showing a potential bullish reversal.
Took buy positions during London session at 1808.53 with SL at 1803.00. Setup taken is a drop base rally, a reversal setup and my 1st target is at the H1 high and supply at 1846.00.

Price rallied to 1820 and failed to rally higher and instead dropped back strongly into demand and formed a strong rejection wick inside demand towards the downside showing a possible  break of demand. However, price still hadn't confirmed breaking demand yet so I still held my positions and stuck to my bias. Price dropped to 1807.90 and formed a strong rejection wick with candle closes inside demand on H1 & H4 followed by a strong H1 bullish engulfing candle to 1814 showing a potential bullish reversal. Price gained strong bullish momentum during NY session rallying in strong H1 all bullish candles, taking out yesterday's 1st H1 high at 1820.00 and formed higher highs confirming a shift in market structure to bullish. Price has rallied 230 pips to 1830.00 and still showing more bullish momentum to rally to the next H1 & H4 supply zone at 1846 before price either shifts and reverses or price breaks and continues rallying.
Current R:R = 1 : 4

Price gained more bullish momentum during London session into NY session as price formed higher highs rallying to 1844.00 back to the 1st H1 & H4 supply zone at 1846.26 & 1841.48 which was my target zone. Price has filled the 1st H1 range from the H1 & H4 supply zone at 1846.26 & 1841.48 to the major H1 & H4 demand zone at 1823.91 & 1807.90 and back to the H1 & H4 supply zone. Price rallied 350 pips into the H1 & H4 supply, rallying deep into supply at 1844.00 then formed strong rejection wicks on H1 & H4 with candle closes inside supply followed by a strong H1 bearish engulfing candle with candle closes inside supply. Target zone hit. 
R : R = 1 : 7