Jurgen Klopp's men resume domestic action looking to keep up the pace at the top of the Premier League, and they head into the weekend's games just two points behind leaders Manchester City.

The Hornets were trashed 5-0 at Anfield last season, with Mohamed Salah scoring four goals in March.

However, Gracia, on the verge of signing a new contract, maintains his side must go into the daunting encounter believing they can hold their own.

"We will be loyal to our style and play the way we usually do, but knowing we have to be careful with their players because they are very, very good," the Watford manager said.

"We know we are playing against this team and you need to play at a high level doing your best.

"It will be very, very demanding and if you make a mistake, they punish you.

"We will have our possibilities, but we want to enjoy playing the game and we try to get a good result."

Watford return to Premier League action in seventh place, having produced some positive performances since ending a four-match losing streak in mid-October.

Midfielder Etienne Capoue will be available to boost Gracia's options, while defender Sebastian Prodl has shrugged off his leg problem.

Although Adalberto Penaranda has now received his work permit, the Venezuela forward is not expected to be thrown straight into action.

Gracia believes his players must look to be on the front foot when the opportunity presents itself against Liverpool, and he wants to get the Hornets fans buzzing.

"It's a good challenge for us," the Watford manager said at a press conference reported by the club.

"We are working hard to live this experience and enjoy the games.

"Playing at home we feel we are able to win all the games we play. I am sure playing home with the support of our fans, it will be a different game."

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