Daily HFT Trade Setup – GBPUSD Consolidating Between HFT Buy and Sell Zones
This morning's analysis of high frequency Fx trading algorithms shows that the GBPUSD is in consolidation mode following its recent uptrend.
Cable is trading between the two light HFT zones thus far in today's session. The HFT zones are located at the following levels:
- the light HFT buying pressure zone at 1.3897 and below.
- the light HFT selling pressure zone at 1.3994 and above.
GBPUSD is currently retracing in a bull flag formation (see chart), coming off what were overbought levels here on the 1-hour timeframe. This is also confirmed by looking at the FxTR overbought/oversold indicator, as shown on the chart.
Given the strong bull context with the predominant uptrend, Fx traders may continue to be inclined to take long GBPUSD positions. That means bullish setups around the light HFT buy zone could be particularly attractive if the price reaches this zone today.
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