Gold has delivered a strong bearish move after breaking down from a contracting triangle structure, confirming weakness in the short-term market direction. The breakdown occurred with momentum and pushed price directly into a key liquidity zone marked below the recent range. This area is now acting as an L-Sweep region, where sell-side liquidity has likely been taken.
At this point, I am not interested in chasing the downside. Instead, I want to see a clear bullish pattern form inside the highlighted liquidity zone. A strong rejection, bullish engulfing candle, or market structure shift from this area would provide confirmation that buyers are stepping in after the liquidity sweep.
If bullish confirmation appears, price could retrace back toward the broken structure and potentially target higher levels. However, if the market fails to show any bullish reaction and continues closing below the liquidity zone, the bearish trend may extend further. For now, patience is key—waiting for confirmation after the liquidity sweep offers the best risk-to-reward opportunity rather than entering blindly into the move.