When the banks establish there price structure and or ranges within any currency pair, the future order flow is based on certain levels of the preceding trading range. Sometimes critical levels can be over shot due to orders being to strong and or cap levels not being maintained. When price dives deep or sells off into a substantial low breaking previous lows with out reacting or bouncing after the liquidity was targeted, this one time creates thin liquidity normally resulting in a sharp counter move back to the original point of origin, however if the market makers display interest in the new re pricing range, they may just mitigate there loss or re structure the loss and wind off those previous longs at the point where the liquidity was tapped into below the previous lows, hence mitigation comes into the market forcing price back down from the breaking level using the breaker block zone as resistance.
