I try to answer that question in this guide. It is popular because you can find here strong trends. Not only on longer time frames but also on lower ones. If you are a trend trader or swing trader, this is something you look for. Make sure that your forex broker has good spreads for that pair — this will lower costs of trading. It may look that this pair is easy to trade, but it is not. There are moments when you can see strong rapid moves which will stop you out in a matter of seconds.
There is another problem. Yes, trends can be strong here, same with the daily range. Because of that, you may need to set a wider stop loss. That means that your possible loss can be quite large. You should trade here with smaller positions. That way you will be able to set wider stop losses. Always check news and economic data — for example here. Remember, it is pound so everything is possible here because of Brexit.
I like to trade any time frame between 5m and 1h. Most times it will be 15m TF. Because you can find here good trending moves and react quickly if something is changing.
Also trading on higher time frames like 4h or daily can work. Trends can be really strong here. Problem is that when you enter a position, your stop loss must be wider.
Here you will catch some good, strong trends. As you know, I am a Fibonacci trader. My perfect market is one with trend and many swings. And you can find all of that here:. On the example, you can see nice ABCD pattern and almost pips move. All on 1h chart. Above you can see daily pivot points in action. That is the same story with weekly pivot points if you prefer to catch longer moves:. Ichimoku Kinko Hyo is a japanese technique. It works great on trending pairs and especially on yen pairs.
I like this pair. It is not that easy to trade as it may look at first. The crucial thing is a proper money management. Strong trend moves give you many opportunities to make money with swing or trend trading strategies.
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