EUR/GBP

The EUR/GBP is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the British pound of the United Kingdom (symbol £, code GBP).

The pair’s rate indicates how many British pounds are needed in order to purchase one euro. For example, when the EUR/GBP is trading at 0.7500, it means 1 euro is equivalent to 0.75 British pounds.

The euro is the world’s second most traded currency, whilst the British Pound (GBP) is the world’s third most traded currency, resulting in a comparatively liquid trading pair.

While the spreads of currency pairs vary from broker to broker, the EUR/GBP often stays within the 1 pip to 3 pip spread range.

This may make it seem like a decent candidate for scalping, although its low range can be a hindering factor, similar to the EUR/CHF.

What Makes the EUR/GBP Unique?

As mentioned, EUR/GBP is seen as a viable pair for scalping, due to its relatively predictable price action, and low stable spread.

Intraday trading the EUR/GBP however does generally require more patience compared to other pairs.

From a technical standpoint, it follows that as EUR/USD and GBP/USD are positively correlated, EUR/GBP’s volatility is going to be less than the two aforementioned majors’.

Perhaps more so than any other, this currency pair has been continually affected by ongoing Brexit discussions in the UK.

Presently, there is no consensus on how the situation will be resolved, something that has influenced the EUR/GBP and will do so until a resolution is agreed upon.