XAUUSD is poised for a potential decline. A test of the resistance line on the RSI indicator and a rebound from the upper border of the "Head and Shoulders" reversal pattern could trigger this movement.
A decisive break below the 2605 support level would confirm the bearish scenario and open the way for a further price drop towards the pattern's target levels.
However, a strong price surge above 2715 would invalidate the bearish outlook and signal a potential rally towards the 2765 resistance level.
In the short term, a bullish correction towards 2655 is possible, followed by a resumption of the downward trend.