XAUUSD – Liquidity Sweep & Breaker Block

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XAUUSD – Liquidity Sweep & Breaker BlockGoldOANDA:XAUUSDGOLD_MARKET_Gold has recently experienced a significant bearish move, maintaining a descending structure with consecutive lower highs However, the latest price action presents an interesting development Price swept the previous lows around the 3,870–3,900 region, potentially clearing sell-side liquidity before producing a strong bullish reaction. Following this move, price recovered above the descending trendline and the marked breaker block. This development suggests improving short-term bullish momentum, although further confirmation is needed before considering the broader daily structure reversed. Key Technical Zones **4,020–4,080 | Breaker Block** An important area to monitor during a potential retest. Holding above this region could support further recovery. **4,260–4,310 | Order Block** A potential supply and resistance region where selling pressure may reappear. **3,870–3,900 | Sell-Side Liquidity** The previous low region where price recently produced a liquidity sweep and bullish reaction. **4,680–4,700 | Buy-Side Liquidity** A higher-timeframe liquidity reference that could become relevant if a broader bullish recovery develops. Possible Scenarios Bullish Scenario If price maintains strength above the breaker block and confirms a successful retest, further recovery toward the 4,260–4,310 order block could become possible. A sustained breakout above that region would provide additional evidence of bullish strength. Bearish Scenario If price loses the breaker block and establishes acceptance below it, the current recovery structure could weaken, bringing the previous liquidity area back into focus. Technical Perspective The combination of a potential sell-side liquidity sweep, bullish displacement, and a descending trendline breakout makes the current price action worth monitoring. However, a liquidity sweep does not automatically confirm a reversal. Further market structure confirmation and price acceptance are essential. **Conclusion:** Gold is showing signs of a potential bullish recovery after taking previous lows. The 4,020–4,080 breaker block remains an important reference area for evaluating whether bullish momentum can continue. *This publication is for educational and informational purposes only. It represents technical market analysis and is not personalized investment advice or a recommendation to buy or sell. Trading involves risk.*