XAU/USD | Gold Price Liquidity Grab Analysis Timeframe: 4H

Key Highlights:

1. Liquidity Zone (LIQ): A significant liquidity zone is identified at the $2,732 level, as marked by the purple box. Price action shows signs of a liquidity grab, evident from the sharp spike above the zone before reversing.

2. Breakout Confirmation: The breakout above the previous resistance suggests a bullish intent; however, the failure to sustain above $2,732 indicates a possible fakeout.

3. Short-term Support: The smaller purple zone ($2,696 - $2,703) now acts as immediate support, providing potential opportunities for buyers to re-enter.

4. Potential Downside Risk: A break below $2,696 could open doors for a deeper correction toward the $2,688 level, or possibly further down to $2,513 if bearish momentum increases.

Strategy Insights:

Buyers: Consider waiting for a confirmed retest of the $2,703 zone for a potential bounce. Tight stop-loss placement below $2,688 is recommended.

Sellers: Monitor for rejection around the $2,732 zone. A reversal signal here could provide a shorting opportunity targeting $2,688 or lower.

Outlook:
Gold remains volatile, and traders are advised to watch key levels closely. A decisive move beyond $2,732 with volume could indicate further upside to $2,800 and beyond. Conversely, sustained rejection at resistance and a break below support could confirm a bearish trend.

Risk management is critical—trade wisely!