EUR/GBP and the lull problem

[Fairman]

EUR/GBP and the lull problem

EUR/GBP is known for slow, low-range trading. The spread is often small in absolute terms, yet relative to typical movement it can be expensive. Many days see ranges of 30 to 40 pips, with long periods of drift.

Scalpers drawn to the pair by its calm behavior sometimes find that the price movement is barely enough to cover costs. A 3 pip target might take many minutes to reach, and the probability of hitting a stop first increases because of random noise.

Activity concentrates in the London morning, especially around UK and Eurozone data. Outside that window, the pair is subdued and liquidity can be thin.

If trading it, narrow the focus to the high-activity window, and use targets proportional to the actual range rather than to a fixed number borrowed from more volatile pairs. Check how often price travels the target distance within the expected holding time.

There are better pairs for pure scalping, but this one suits patient mean-reversion styles when conditions align.

Has EUR/GBP turned out to be a good scalping instrument, and during which hours?