EURGBP as a range pair: testing whether the ranges still hold

[FXS London Scalper]

EURGBP has long had a reputation as a slow, range-bound cross, since both economies are closely linked and their central banks often move in similar directions. Whether that reputation still holds is worth checking rather than assuming.

A method: measure the average daily range and the share of days that close inside the previous day's range over the last year, and compare with EURUSD and GBPUSD. If EURGBP shows a clearly higher share of inside days, range strategies such as fading the edges of the Asian range may suit it better.

A worked example of a rule to test: sell near the top of a ten-day range, buy near the bottom, stop a fixed distance outside, target the middle. The test should include spreads, which on crosses can be wider than on majors.

Divergence between the ECB and the Bank of England can break ranges for weeks, so a filter for central bank weeks may be needed.

Has anyone tested range behaviour on this cross recently?