XAUUSD Gold has shown a strong recovery

Gold has shown a strong recovery, bouncing from the recent low near 4,036 up to the current price of 4,089.125, marking a notable upward swing after a period of decline through the session. The immediate hurdle for bulls is the order block resistance zone sitting between 4,110 and 4,118, marked by the gray box on the chart, which previously acted as a support-turned-resistance level. If price manages to break and close cleanly above this 4,118 zone, it would open the door toward the major liquidity zone highlighted at 4,175-4,185, which appears to be the primary bullish target as suggested by the projected blue arrow.

Trade Signal (Long/Buy): Entry around current levels (4,089), Target 1 at 4,116 (near the order block), Target 2 at 4,176 (near the liquidity zone, after a confirmed breakout above the order block). Stop loss should be placed below recent swing low around 4,060-4,070 to manage risk.

This liquidity zone has likely accumulated stop orders and pending liquidity from earlier price action, making it an attractive draw for price. On the downside, if price fails to hold above 4,080 and closes below it, the bullish structure could weaken, potentially sending price back down toward the 4,060-4,070 region for retesting. Traders should watch for confirmation signals such as a strong bullish candle close above the order block with supporting volume before considering long entries, and should place stop losses below recent swing lows to manage risk appropriately.