Nice idea on XAUUSD and there may be bearish bias as you have identified. For our set up, we have identified the key support and resistance levels. The first resistance that we have identified is at 1212.28. It is a horizontal overlap resistance. Stochastic is approaching 91% where a corresponding reversal could occur. If a reversal does occur, we may want to look at the 1198.37 support level, which coincides with the lower limit of your target demand zone. It is a horizontal swing low support with 76.4% Fibonacci retracement. Looking forward to seeing how things develop.
Please have a look at our idea and share with us what you think.