XAUSD- Possible setup on 1 Hour timeframe

Key Details:
Entry Point: The suggested entry point appears to be after a minor pullback from the recent high. This typically indicates a possible rejection from a resistance level before a bearish movement. It looks like the entry is close to 2578 (as displayed on the chart).

Stop Loss: The stop loss is placed above the recent highs, around 2582, protecting the position in case the market moves upward.

Take Profit Levels:

Take Profit 1: Around 2565, which is near the immediate support level.
Take Profit 2: Further down, at 2532, indicating a deeper retracement or bearish movement. This level corresponds to a broader support zone visible on the chart.
The setup shows a clear risk-reward ratio, where you are risking a small amount (difference between entry and stop loss) to gain a larger potential profit (difference between entry and take profit). This strategy can be effective when anticipating a correction from recent highs in a bearish setup.