The Enigmatic EUR/GBP or is it?

Everyone knows that GenuineFX has been concentrating on EUR/GBP signals for a very long time and providing these signals to our members.

We are aware everyone has heard of theories about types of traders ET all, but we are talking purely of the psychology of a veteran forex trader or how the BIG Brothers think.

Based on our belief, we think there are two types of forex traders. Why do we think and are not definite? Well, simply because we would never ever make the mistake of making a definite statement as definitiveness is a fool and illusionist’s paradise in forex trading.

So, onto the types of traders:

1) The professionals: would or should have the EURGBP in their portfolio or at least use its reference for their trading strategy.

2) The wanabes: would have all the works and display amazing pips profits for the to-be clients but think EURGBP is not too exciting.

So how can eurgbp help provide your forex trading decisions an edge(whatever small edge it an provide that is)?

The reason why GenuineFX chose EURGBP long time back as a major part of its strategy was because of one single most important factor: it could on an average weather most of the storms that come with spike situations in the forex market.

Coming to the practical part: Let’s say EURGBP seems to be rising, the possible scenarios would be as follows: 1) EURO shall move up, British Pound would stay mostly flat or with minimal movement.

1) EURO shall move up, British Pound would stay mostly flat or with minimal movement.

2) EURO SHALL stay mostly flat or with minimal movement, British Pound would move down considerably.

3) Both British Pound and EURO would move UP, but EURO shall move UP MORE than British Pound, relatively.

4) Both British Pound and EURO would move down, but British Pound would move DOWN MORE than EURO, relatively.

In the case of EURGBP falling, the reverse of the above would be true.

Now, our observation leads us to believe that most of the times points 3 and 4 take place more than points 1 and 2, so you should focus more on 3 and 4 for taking positions on EURUSD AND GBPUSD. What would provide more of an edge:

1) Use a daily chart always, in context to this article.

2) For at least 0:00 GMT-12:00 GMT, if you see that EURGBP is rising, then you can make some pips up on EUR/USD but should not try making more than 30-40 pips.

There are many more observations that we have regarding the enigmatic EURGBP but it is not possible to write it all down here for various reasons. If this article helps your forex trading strategy even 0.000001% in someway, then this article has done its job.