XAUUSD Bullish London + Retail Sales Projection (1:5RR)

Fundamental Sentiment

Retail Sales Sentiment: With positive inflation data, retail sales are expected to increase tonight, which would be bullish for the dollar.

However, in anticipation of this release, we’re currently seeing a decline in the dollar and a rally in XAUUSD.

Directional Bias
London Bias: Bullish, with price targeting key H1/H4 levels at 2700 and 2710, where a reversal is expected in line with the retail sales release tonight.

Price Action

• Price delivered a sharp pullback into a key 30-minute order block and rejected this level.
  
• The rejection led to a break of structure at the start of the London session.
  
• Currently, anticipating a price pullback into the M15 order block at 2695.60. If price retraces into this range, I will look to enter near the intersection at 2693.
  

Trade Setup

• Stop Loss: Below the London open low.
  
• Potential Return: 1:5 risk-to-reward ratio.
  

Setup Invalidation
If price reaches the target levels of 2700 and 2710 without retesting the 15-minute order block, the setup will be invalidated.