XAUUSD: Sell-Side Liquidity Sweep Before a Bullish ReversalGold vs US DollarIC:XAUUSDMichael_Fx_TraderXAUUSD is currently trading below its previous consolidation range after a strong bearish breakdown. Technically, the market may seek liquidity resting below the recent lows before initiating a potential bullish reversal toward the internal range liquidity (IRL). 1. Consolidation Range and Bearish Breakdown Gold consolidated between approximately 4100 and 4220, creating a well-defined trading range. A decisive break below the lower boundary near 4100 signaled bearish momentum and a shift in market structure, increasing the likelihood of further downside liquidity seeking. 2. Sell-Side Liquidity (SSL) The key downside liquidity zones are located below the recent lows, particularly around 3980 and 3950. The market may sweep these levels to trigger resting sell-side orders before establishing a potential reversal. A liquidity sweep alone, however, does not confirm that a bullish reversal has begun. 3. Potential Bullish Reversal Scenario After sweeping sell-side liquidity, a strong bullish displacement followed by a lower-timeframe market structure shift (MSS) could indicate that buyers are regaining control. A successful reclaim of nearby resistance would strengthen the bullish case. 4. Upside Liquidity Targets If the bullish reversal is confirmed, the marked chart identifies the following potential upside targets: - Target 1: 4025 - Target 2: 4060 - Target 3: 4075 - Target 4: 4100 - Target 5: 4140 - Target 6: 4190 - Target 7: 4220 — Buy-Side Liquidity (BSL) - Target 8: 4280 — Internal Range Liquidity (IRL) Conclusion The primary scenario is a potential sell-side liquidity sweep around 3980–3950, followed by bullish displacement and a recovery toward the previous trading range. The 4100 level is an important reference point for assessing whether price can reclaim the broken range. Note: This is a conditional technical scenario, not a confirmed reversal. Failure to reclaim resistance or continued bearish displacement could lead to further downside rather than the projected bullish recovery.