The London breakout strategy is one of the most popular forex trading strategies used by traders around the world. It is a simple yet effective strategy that involves identifying key levels of support and resistance and trading breakouts that occur when these levels are breached. The strategy is particularly effective in the London session, which is known for its high volatility and liquidity. In this article, we will look at some of the best forex pairs for the London breakout strategy.
GBP/USD
The GBP/USD is one of the most popular forex pairs for the London breakout strategy. This is because it is one of the most volatile currency pairs during the London session, with average daily trading volumes of around $130 billion. This makes it an ideal pair for traders who are looking to trade breakouts and take advantage of the high volatility.
EUR/USD
The EUR/USD is another popular forex pair for the London breakout strategy. It is the most actively traded currency pair in the world, with average daily trading volumes of around $570 billion. The euro is the currency of the eurozone, which includes 19 countries in Europe. The US dollar is the world’s reserve currency and is used in most international transactions. The high liquidity of this pair makes it an ideal choice for traders who are looking to trade breakouts.
USD/JPY
The USD/JPY is another popular forex pair for the London breakout strategy. This pair is particularly popular among traders who are looking to trade the Asian session, as the Japanese yen is the currency of Japan, which is located in the Asian time zone. The USD/JPY is also known for its high volatility, which makes it a good choice for traders who are looking to trade breakouts.
AUD/USD
The AUD/USD is a popular forex pair for the London breakout strategy, especially among traders who are looking to trade the Australian session. The Australian dollar is the currency of Australia, which is located in the Asia-Pacific time zone. This pair is known for its high volatility, which makes it an ideal choice for traders who are looking to trade breakouts.
USD/CAD
The USD/CAD is a popular forex pair for the London breakout strategy, especially among traders who are looking to trade the North American session. The Canadian dollar is the currency of Canada, which is located in the North American time zone. The high volatility of this pair makes it an ideal choice for traders who are looking to trade breakouts.
Conclusion
The London breakout strategy is a simple yet effective forex trading strategy that can be used to trade a wide range of forex pairs. However, not all forex pairs are created equal when it comes to trading breakouts. The best forex pairs for the London breakout strategy are those that are highly liquid and volatile, and that are traded in the time zone in which you are trading. The GBP/USD, EUR/USD, USD/JPY, AUD/USD, and USD/CAD are all popular forex pairs for this strategy and are worth considering for your trading portfolio.
