XAU (Gold) Reversal at Key Resistance

2 set

XAUUSD on a daily timeframe. The price has been moving within an ascending wedge, a pattern often considered bearish. Recently, the price reached the upper boundary of the wedge near the $2,550 level, which coincides with a significant resistance zone. The chart suggests a potential reversal from this level, with a possible downside target around the $2,305 zone, which aligns with a fair value gap (FVG) and a previous support level. The chart indicates that if the price breaks below the lower boundary of the wedge and the support at around $2,485, it could lead to further declines towards the $2,305-$2,250 area. This scenario would invalidate the current bullish trend and might initiate a bearish phase in the short to medium term.