GBP/USD spikes near HFT buying zone

FX Trading Revolution Team FX Trading Revolution

We are analyzing high-frequency trading algorithms in the foreign exchange market this Wednesday morning and find that the GBPUSD pair shows interesting price behavior that may create some buying opportunities.

GBPUSD came down sharply earlier in the morning, almost touching the light HFT buying pressure zone that stands at 1.3337 and below in today's session. The price then bounces on volatile trading driven by Brexit headlines. Such volatility has become normal for GBP traders since the 2016 Brexit referendum. Therefore, it's important to remember that technical levels and patterns can be easily broken on such bouts of unexpected volatility.

To the upside, the light HFT selling pressure zone is noted today at 1.3464 and above.

GBP/USD Current Trading Positions

Sell 14%

Buy 86%

Avg Sell Price 1.3330

Avg Buy Price 1.3348

Liquidity Distribution

FX Trading Revolution - Your Revolutionary Forex Source

Author

FX Trading Revolution Team

FX Trading Revolution

The FX Trading Revolution website is a free independent FOREX source, and was founded to provide true and unbiased information about FOREX trading.

EUR/USD bounces off lows, back to 1.1860

EUR/USD now manages to regain some balance, retesting the 1.1860-1.1870 band after bottoming out near 1.1830 following the US NFP data on Wednesday. The pair, in the meantime, remains on the defensive amid fresh upside traction surrounding the US Dollar.

GBP/USD rebounds to 1.3660, USD loses momentum

GBP/USD trades with decent gains in the 1.3660 region, regaining composure following the post-NFP knee-jerk toward the 1.3600 zone on Wednesday. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold stays bid, still below $5,100

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of humble gains in the US Dollar and firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.