XAUUSD TRADING STRATEGY BULLISH False Breakout Possibility:
The breakout above the resistance level could be a fake-out, leading to a sharp reversal instead of a continued upward movement.
A double top at the resistance level may indicate a stronger bearish reversal rather than further bullish momentum.
2. Overextended Trend:
The previous strong bullish move could be overextended, leading to exhaustion. A correction or retracement back to trendline support is highly likely.
The market could enter a consolidation phase instead of continuing the uptrend immediately.
3. Liquidity Grab Before Drop:
Market makers often push prices above key resistance to trigger stop-loss orders before reversing the trend.
The price could break resistance temporarily but then drop significantly back into the support zone.
4. Fundamental Factors:
If economic news or central bank policies favor the USD, gold (XAUUSD) may weaken instead of continuing its bullish run
