We are analyzing the Forex market and the activity of HFT algorithms on the EURGBP pair this morning and note that interesting bullish trading opportunities may exist here in the day-trading session ahead.
EURGBP has recently entered a downtrend on the 1-hour timeframe which has taken the price to oversold levels a few times already. As is evident on the chart below, the FxTR overbought/oversold indicator is again entering the oversold area just now.
Trend indicators, on the other hand, are of course still showing the trend as bearish but there are warning signs and several conditions for a bounce already are in place. EURGBP is also trading inside of a downward/falling channel and current price levels around 0.9140 are near the support trendline of this channel.
If EURGBP can bounce here and a bullish pattern or signal is formed it would create good conditions for taking a buy trade. The resistance trendline of the channel around the 0.9200 level and the light HFT selling pressure zone which is noted at 0.9243 and above, will be targeted areas by the bulls.
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