Who prefers GBP/USD to EUR/USD for intraday trading, and why?

[pipmarshal]

GBPUSD is an exciting pair.

Hi everybody, am new over here and this is my first post. I have been trading for some years and GBPUSD is my favourite pair because

1. Its daily trading range is wider. EURUSD range tends to be narrow on most days.

2. It is active and moves up and down in a 30-40 pips range, sometimes in your favor and sometimes otherwise. EURUSD tends to be stuck in a 10 pips range and is a boring pair.

3. It tends to react to news whether out of london or NY, no reaction no volatility. EURUSD generally does not react much to news out of Eurozone, mostly because there are very few surprises in those news.

4. GBPUSD tends to have its resistances and supports based on tech analysis most of the time whereas EURUSD seems to have other factors like Central Banks' intervention, options expiry interfering with its resistances and supports.

5. GBPUSD tends to be less affected by actions of its crosses whereas EURUSD tends to be more affected by the action of its crosses

These are the few significant reasons.

Have a nice 100 pips day

PM

 

[pipmarshal]

Trading News items

Same here, except I just want to avoid the major releases!

Do UK and European news releases tend to have a significant impact on GBP/USD, or do the news releases that significantly impact on cable all GBP/USD from the US?

Are there any European news releases that significantly impact upon EUR/USD?

tHANKS.

News out of UK and US tend to have a significant impact on GBPUSDcompared to eurozone news. Eurozone news does not have much of an effect on GBPUSD unless it has a dramatic effect on EURUSD which is very rare.

EURGBP also plays a significant part in how EURUSD and GBPUSD react to news items. Suppose EURGBP is near a resistance and there was a USD negative news then you would see GBPUSD outperforming EURUSD as soon as the news is out.

Some of the experienced traders say it is better to master one pair and trade it, i disagree with them to a certain extent. I agree that you should become thorough about one pair and stick to it but to master that one pair you would have to master the crosses as well. I don't think you can effectively trade EURUSD especially without bringing its crosses into the picture.

PM

 

[SvenFoster]

The 12month average Daily Ranges are something like...

Pair__________%______pips
EUR/USD___0.84%_______101
GBP/USD___0.78%_______138


Now my broker charges 1.5pips for EUR and 3 pips for GBP.
A simple calculation of range/spread gives you something like
EUR/USD: 67 x spread movement
GBP/USD: 46 x spread movement

This alone makes eur a better target for me. Not to mention slippage, liquidity and lack of adrenaline. However how many of these pips happen when i'm around.....

I dabbled in cable for ages and got spanked most days, Euro? well time will tell.

At the end of the day are you here to make money or "tame the beast"?. If you can make money on cable then do it as it will give you plenty of oportunaties through out the day.
However euro is a different beast slower moving, more predictable and behaves better alround.

It depends your your game, be it shooting bigcats or little cats choose your weapon, take aim and don't miss as even kittens have claws.

Pick whichever floats your boat and you only need one unless your setups don't come along often.

 

[c6ackp]

Cable can be more fun! It gets an extra "kicker" from EUR/GBP, so the moves can be much greater - however EUR is slightly more reliable from a technical point of view - why not trade forex futures? 1pip GBP spreads during US session OR buy@bid, sell@ask => eliminate the spread, pay only the commission - EUR futures are better value than GBP futures as the contract size/commission ratio is higher

 

[kon_london]

cable

Hi

Who prefers GBP/USD to EUR/USD for intraday trading?

If so why?

I have favoured EUR/USD (spot market for now) as it's the "bigger" curreny pair, but of late I have noticed that GBP/USD (spot market for now) may provide equal or greater opportunities for intrady profits, due to more significant price moves.

Because GBP/USD doesn't have as high a volume as EUR/USD do you think that price movements may occur more easily, with greater fluidity, but with enough obviously, with enough volume for there not to be gaps?

What's your take on this?

Cheers
jtrader.

We trade cable more than 6 years. That is very good pair.

 

[Heitschi]

Good morning!

Does anybody know an Blog where an FX-Trader offers his/her Cable or Euro Trades?
Im interested in EUR/USD an GBP/USD in 5min TF and i keep trading it since 2 years.

Ciao,
Heitschi

 

[indexgold]

I prefure EUR/USD and I trade the Futures. over the spot price, but I am only looking for 4 pip moves at a time

 

[Baruch]

Good morning!

Does anybody know an Blog where an FX-Trader offers his/her Cable or Euro Trades?
Im interested in EUR/USD an GBP/USD in 5min TF and i keep trading it since 2 years.

Ciao,
Heitschi

Look here:

http://soultraderdiary.blogspot.com/

http://pippinainteasy.blogspot.com/

http://tradingforaliving-assess.blogspot.com/

 

[Baruch]

Look here:

http://soultraderdiary.blogspot.com/

http://pippinainteasy.blogspot.com/

http://tradingforaliving-assess.blogspot.com/

And one more:


http://i-found-my-holygrail.blogspot.com/

 

[UM_manager]

Our reseach shows that the GBPUSD spectrum has better structure then the spectum of EURUSD ( i.e. it has main cycles with greater ampletude). That is why GBPUSD is better for intraday trading. Nevertheless, in the long-term perspective they are almost the same:

 

[Baruch]

I actually disagree with a lot of FXScalper's points- but that is why there is a market!

Of all currencies cable can move especially on econ data. It is finds it very hard to recover intra day if it has started off weak.

Lets take tomorrow as an example. If the inflation numbers are out by 0.2 then you would expect cable to gap say 20 pips and then move another 50. Throughut tis time euro dollar would hardly move.

The reason I like cable so much is that it is less liquid than euro dollar and hence can move more.

Yes, I agree. Cable is wonderful for news trading - like Loonie (most of the time).

 

[JTrader]

EURUSD is hardly moving, but cable has been all over the place today

Today EURUSD has presented very few tradable opportunities for me, as the range has been narrow all day.

I have looked at GBPUSD chart for today, and there have been many tradeable opportunities.

Perhaps I am in the wrong instrument?

I know that cable moves more easily than EURUSD, and for every 20 pips EURUSD may move, cable may move 30 pips...........

How big a difference is the switch from EURUSD to GBPUSD?

The prospect of quicker/easier trends in GBPUSD is partly what has scared me away from attempting to trade GBPUSD, thus sticking with EURUSD.

Would it be wrong to say that cable is more difficult to trade due to this increased volatility and speed of price movement?

Should I be looking at this increased speed of price movement as a positive and not something to be afraid of?

Does European economic news from outside the UK affect GBPUSD prices?

Thanks a lot.

 

[neil]

Today EURUSD has presented very few tradable opportunities for me, as the range has been narrow all day.

I have looked at GBPUSD chart for today, and there have been many tradeable opportunities.

Perhaps I am in the wrong instrument?

I know that cable moves more easily than EURUSD, and for every 20 pips EURUSD may move, cable may move 30 pips...........

How big a difference is the switch from EURUSD to GBPUSD?

The prospect of quicker/easier trends in GBPUSD is partly what has scared me away from attempting to trade GBPUSD, thus sticking with EURUSD.

Would it be wrong to say that cable is more difficult to trade due to this increased volatility and speed of price movement?

Should I be looking at this increased speed of price movement as a positive and not something to be afraid of?

Does European economic news from outside the UK affect GBPUSD prices?

Thanks a lot.

Try a longer time frame - hourly/ four hourly etc.

 

[JTrader]

Hi

I've re-read the thread and its refreshed my memory on some questions.

EURUSD seems to get stuck in morning ranges and is very still. If there is major news, price may trend in the afternoon and more opportunities to trade may then arise. However, I've found that you can move from a dead quiet ranging EURUSD morning with few opportunities, to very fast price action in the afternoon after ENR's and may still feel untradeabler as a clear tend has not developed, and a very quick range replaces the very slow range from the morning!

But even with a major release like ISM manufacturing today at 1500, price action barely got going in a sustained way afterwards up until 1600...........

Is intraday cable more predictable in that there are fewer quiet ranges/dead time than with EURUSD?
Is cable price action more constant/on an even keel than EURUSD - i.e. generally faster, and more easily knudged out of a range and into a trend?

Having said all that, the opposite can also apply (as is the case with many things about trading) whereby a morning EURUSD quick trend will form for non obvious reasons...........

Also common with EURUSD over the last 2 months at least are slow (mostly downwards) trends particularly in the morning. Price will have little or no momentum, and will drift slowly down, momentum will pick up as a few panick sellers come in/bids are withdrawn at multiples of 10 levels, and price will fall lower.
1 hour or more later, I look at the chart, and price EUR will have formed maybe a 40-pip downtrend, and I'm left thinking, where did that come from?
I see it afterwards, but at very few stages during ths time was momentum making it obvious that such a big swing/trend was possible or would result

 

[JTrader]

I prefer the safety of EURUSD following major ENR's, compared to GBPUSD. As Friday proved, GBPUSD can move stupendously quickly, which is great if you are on the right side of the trade, but a nightmare scenario, if on the wrong side.................

However, I prefer the look of cable during periods without major ENR's, due to the greater ease of cable price movements, with less resilient S/R.

Perhaps EURUSD is considered a good intraday forex training ground.
Once you have a sound strategy and money management techniques, perhaps progressing to cable is worthwhile and a logical steo, for the trading elite, with super fast reactions, due to the increased profit opportunities for those who can (make a profit)?

 

[noises49]

GBPJPY - The 800 Pound Gorilla

Ranges and trading signals for Feb 5, 2 hours prior to close:

Pair Range (# Signals)

EU 52 (0)

GU 132 (7 Short / 3 Long)

EJ 154 (6 Short)

GJ 278 (14 Short)
GJ nets - 968 (see attached)

 

[JTrader]

EURUSD can be like a dead dog on days like today with a 33 pip maximum move up since 0800.
GBPUSD has been up 87 pips since 0800.

Perhaps beginner forex traders prefer the safety of the slower moving EURUSD. But once they start to gain confidence and clarity in their trading methods, based on the belief that they will make money rather than lose money, they then begin to see the freely moving GBPUSD as a more willing, and potentially more rewarding Cash Cow to milk.......... :idea:

 

[jgerousis]

Hi

Who prefers GBP/USD to EUR/USD for intraday trading?

If so why?

I have favoured EUR/USD (spot market for now) as it's the "bigger" curreny pair, but of late I have noticed that GBP/USD (spot market for now) may provide equal or greater opportunities for intrady profits, due to more significant price moves.

Because GBP/USD doesn't have as high a volume as EUR/USD do you think that price movements may occur more easily, with greater fluidity, but with enough obviously, with enough volume for there not to be gaps?

What's your take on this?

Cheers
jtrader.

In my opnion the two are good. GBP although i smore volatile, and moves bigger moves, yet it swings a lot. There is much potentional in GBP.

The EUR is also good, because when it trends, it trends in a neat way.

 

[4xpipcounter]

I noticed this thread is kind of old, but I found it kind of interesting. If someone still wants to discuss it, I'm open to sharing some dialogue. I just don't want to talk to myself.

 

[fayalac]

GBPUSD is one pair that doesn't respect technical levels. Anybody who watches the price will very quickly realise this. The reason is that GBP is affected by the bigger pairs EURUSD and USDJPY. It is virtually unheared of for EURUSD to do something without GBPUSD following. It may seem pointless to trade GBPUSD for this reason. Let me explain.

Let's say Cable has support at 1.7450 the price is now close to that point. Let's also say EURUSD is directionless and is moving up and down within a tight range. A fast 10 pip move down in EURUSD within the rage can make GBPUSD break support. This happens a lot. In these cases GBPUSD usually comes back up but not before trapping some breakout players and shaking out some weak longs.

To trade GBPUSD successfully therefore requires keeping an eye on the EURUSD and USDJPY pairs. The question then is: why not trade the big ones and let go off cable? The advice I give to inexperienced traders is to stick to EURUSD. That pair is by far the easiet to trade because it is huge and largely independent of the other pairs. One reason one may trade Cable is if one likes to get their profits (as well as their losses quickly).

Having said all that, once you know what you are doing, GBPUSD can be the best pair to day trade because it gives you one of the most important aspects of successful trading: everthing else being equal, an instrument that gives you a lot of opportunities to trade is the one you should choose.


P.S. You will also generally need a wider stop with GBPUSD.

Hope this helps.

Also, when you profit with these pair you do it faster than with EUR/USD, but as you said is a lot more complicated.