The London Open Breakout is a popular trading strategy among forex traders. This strategy involves opening trades at the beginning of the London trading session when there is a surge in market activity. The London market is the largest financial market, and the opening of the London session is considered the most volatile period of the trading day. In this article, we will explore the forex pairs that work with the London Open Breakout strategy.
Forex pairs are the currency pairs traded in the foreign exchange market. There are major, minor, and exotic forex pairs. Major pairs are the most traded currency pairs, and they include the USD/EUR, USD/JPY, and USD/GBP. Minor pairs are less frequently traded, and they include the EUR/CHF, GBP/JPY, and AUD/NZD. Exotic pairs are currency pairs that involve a major currency and the currency of a developing or emerging economy, such as the USD/ZAR, USD/TRY, and USD/SGD.
The London Open Breakout strategy is suitable for trading major forex pairs that involve the US dollar. The most popular forex pairs that work with the London Open Breakout are the USD/EUR, USD/JPY, and USD/GBP. These pairs are highly liquid and have narrow spreads, making them ideal for this strategy.
The USD/EUR pair is the most traded currency pair in the world. This pair is suitable for the London Open Breakout strategy because the London market is the largest financial market, and the euro is the second most traded currency after the US dollar. The USD/EUR pair has a high trading volume during the London session, and this makes it highly volatile.
The USD/JPY pair is another popular forex pair that works with the London Open Breakout strategy. This pair is suitable for this strategy because the Japanese yen is the third most traded currency in the world, and the London market is the largest financial market. The USD/JPY pair has a high trading volume during the London session, and this makes it highly volatile.
The USD/GBP pair is also suitable for the London Open Breakout strategy. This pair is highly liquid and has narrow spreads, making it ideal for this strategy. The British pound is the fourth most traded currency in the world, and the London market is the largest financial market. The USD/GBP pair has a high trading volume during the London session, and this makes it highly volatile.
In addition to the major forex pairs, the London Open Breakout strategy can also be applied to some minor forex pairs. The most popular minor forex pairs that work with this strategy are the EUR/CHF and the GBP/JPY.
The EUR/CHF pair is suitable for the London Open Breakout strategy because the Swiss franc is a safe-haven currency, and the London market is the largest financial market. The EUR/CHF pair has a high trading volume during the London session, and this makes it highly volatile.
The GBP/JPY pair is also suitable for this strategy because the Japanese yen is a safe-haven currency, and the London market is the largest financial market. The GBP/JPY pair has a high trading volume during the London session, and this makes it highly volatile.
In conclusion, the London Open Breakout strategy is a popular trading strategy among forex traders. This strategy involves opening trades at the beginning of the London trading session when there is a surge in market activity. The most popular forex pairs that work with this strategy are the USD/EUR, USD/JPY, and USD/GBP. These pairs are highly liquid and have narrow spreads, making them ideal for this strategy. Additionally, the strategy can also be applied to some minor forex pairs such as the EUR/CHF and the GBP/JPY.
