XAUUSD reacting below descending trendline resistance. Drop incoming!

XAUUSD is reacting below descending trendline resistance. With technical indicators showing room for further bearish momentum, a short term intraday drop below 38.2% Fibonacci retracement and 1st resistance at 1892.51 towards graphical overlap support at 1st support at 1874.13 is possible.

Trading Recommendation

Entry: 1892.51

Reason for Entry:

38.2% Fibonacci retracement, descending trendline resistance

Take Profit: 1874.13

Reason for Take Profit:

61.8% Fibonacci retracement

Stop Loss: 1900.20

Reason for Stop Loss:

Graphical swing high resistance