The EUR/GBP currency pair is one of the most attractive underlying securities to trade binary options. This is due to the steady movements showed by this currency pair.
Both currencies depend on similar impact factors, therefore they fairly often show simultaneous rise or fall.
The EUR/GBP currency pair enjoys high popularity on the market and second only to the U.S. dollar. In this pair, the euro is a base currency priced in the UK official currency. This means that quotation shows how much pound sterling you need to buy one euro.
Analysis of EUR/GBP
The price of the pound sterling as well as of the euro is impacted by many factors. One of them is the UK trade turnover. The trade turnover with the United States is of particular significance for this currency. Increase in the trade turnover is a positive factor. The pound sterling is pushed up by decrease in energy cost, a producer price index, and other events. Also, the Bank of England decision on the key interest rate as well as other factors has a serious impact on the currency.
Economic reports concerning the pound sterling are released on a daily, weekly, monthly basis. Announcements on the key interest rate are made on the first or second Thursday each month. Retail sales and GDPfigures are released on a monthly basis. The Bank of England publishes its inflation report quarterly. An average unemployment rate and house price index are published on a monthly basis.
Besides, you should follow the statements of the Governor of the Bank of England that are made quite regularly.
Positive projections push up the UK currency, and negative projections make it decline. Negative factors include accidents, disasters, shutdowns, wrong internal and international policy.
Events in the EU countries have an impact on the price of the European currency. Also, it’s influenced to some extent by the events outside the Eurozone. Besides, any investor preparing forecasts of euro behavior must have in mind the ECB key interest rates and its projections.
Consumer indices in the EU countries are of great significance for the euro behavior. However, the euro exchange rate chiefly depends on the events in twelve countries of eurozone withthe largest economies. They include Germany, Spain, France, Greece, Netherlands, etc. You need to have economic growth and an average unemployment rate in these countries.
Events in Germany, the largest economy of the eurozone, have the most significant impact on the euro. The country’s GDP figure as well as the economic sentiment index and business climate index is released on a quarterly basis.
The EUR/GBP currency pair rarely shows sharp movements enabling an ivestor to make informed well-thought-out decisions and ensuring relaxed trading. Typically, 100 points is a maximum movement during a trading session.
During the European trading hours starting at 9:00 a.m, the trading volumes are the heaviest. Trading on the London Stock Exchange begins at the same time.
If you prefer relaxed conditions, I advise you to trade during the Asian or U.S. trading hours.
Experts advise to perform analysis using the M15 and H4 time frames as they allow an investor to assess the situation accurately.
Some traders may find doing the EUR/GBP analysis difficult because they have to compare the similar economies. Besides, the UK is a member of the EU, and its currency rate directly depends on the euro.
Therefore, you have to consider only those news reports that concern internal economic events and do not relate to both UK and EU economies.
Where to Make a Profit on EUR/GBP
To make a profit on EUR/GBP, I advise you to trade binary options as this is the only financial instrument ensuring a 70% return in 10 to 15 minutes.
You can invest in currency pairs with AnyOption, the modern binary option broker certified by the EU certification authority. The broker provides a wide choice of the underlying securities including shares of Daimler AG, Apple, Samsung, crude oil, USD/CHF etc.
All you need to make a profit on binary options is to forecast whether the price is to rise or fall during a certain period.
After the analysis of EUR/GBP, I browsed the broker’s page and chose EUR/GBP as an underlying security. Then, I set the expiration time to 4:00 p.m. It was 3:42 p.m. at that moment meaning that I invested for a period of 18 minutes. After I have typed the amount of investment, I clicked PUT expecting the price to fell the period I selected:
After 20 minutes, I checked the result.
Using this fairly simple instrument, I managed to get an 80% or $96 return on EUR/GBP in just 18 minutes.