Although captain Steven Gerrard will miss the game through injury, Harry has highlighted a seemingly back-on-form Fernando Torres as one of the main reasons why the Merseysiders could end up being back amongst the big boys come the end of the season.
However, he hopes we can carry on our run of having beaten Liverpool in our last three meetings at the Lane.
The manager said: "We have a tough game on Sunday. Liverpool are just starting to play well and Roy is getting them to play the way he wants them to play.
"I still think they are a big threat to finish in the top four. Torres is back and looking sharp and scoring goals.
"We've beaten Liverpool in the last couple of years at home but Roy's had a chance to work with them and they will get stronger."