EURGBP and the Asia range fade: does it still work after costs?
Posted: Thu Sep 17, 2026 12:28 am
Asia range fade into London on EURGBP is an old idea. Costs decide whether it still earns rent.
I fade a clear Asia extreme only when London shows rejection rather than acceptance, and I keep the target inside the Asia range — not a fantasy mean-reversion to last week’s midpoint. Cross spreads mean the pattern must be clean; pretty is not enough.
Rule: no fade if Asia range is tiny (nothing meaningful to mean-revert) and no fade if London opens with strong directional displacement through the extreme. Pending orders parked at Asia highs without confirmation have been worse for me than waiting for the rejection close.
If EURUSD is one-way and GBP is just dragged, EURGBP fades can be residual noise. I check the parents before fading the child.
I would rather miss a tidy fade than collect a cost-eaten scratch that looks clever in hindsight.
I fade a clear Asia extreme only when London shows rejection rather than acceptance, and I keep the target inside the Asia range — not a fantasy mean-reversion to last week’s midpoint. Cross spreads mean the pattern must be clean; pretty is not enough.
Rule: no fade if Asia range is tiny (nothing meaningful to mean-revert) and no fade if London opens with strong directional displacement through the extreme. Pending orders parked at Asia highs without confirmation have been worse for me than waiting for the rejection close.
If EURUSD is one-way and GBP is just dragged, EURGBP fades can be residual noise. I check the parents before fading the child.
I would rather miss a tidy fade than collect a cost-eaten scratch that looks clever in hindsight.
- Still trading Asia range fades on EURGBP?
- London confirmation required, or pending orders at the extreme?