EUR/GBP at HFT selling zone!
|We are analyzing the trading activity of HFT algorithms in the Fx market today and have noticed that bearish trading opportunities may be provided on the EURGBP currency pair.
Euro/Pound has already reached the light HFT selling pressure zone that is noted at 0.8854 and above today. The most recent bullish leg has also been rising steadily in a bullish channel on the 1-hour chart. So, while the trend is bullish by all metrics including trend indicators like the Master MACD and the FxTR CCI which are shown on the chart below, there is scope for a reversal to take place today.
The potential for a reversal is confirmed by the FxTR overbought/oversold indicator which shows that EURGBP is at overbought levels on the 1-hour timeframe. The first signal for a reversal would come with a bearish breakout of the bullish channel.
Under this bearish scenario, EURGBP could easily reach the 0.8800 level and/or the light HFT buying pressure zone that is noted at 0.878 and below.
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