Terrific Price Action In The London Forex Session

Some terrific price action in this morning’s London forex session and one in which we were spoilt for choice with the euro, and Swiss franc and the Japanese yen all offering wonderful opportunities as these currencies moved strongly. Here it was just a case of choosing the pair using the currency strength indicator as the starting point, and then checking on the sentiment across the complex with the currency matrix indicator. In the session, we following the CHF/JPY and the EUR/JPY which both delivered in equal measure

Liquidity and volatility go hand in hand and during the session, we also highlighted an excellent tool for displaying both. And for the British pound, yesterday it was buy the rumour and today is sell the fact. Like volume, liquidity is a key tool and where markets rise or fall on thin liquidity, this is a clear signal of an anomaly and therefore a warning signal of danger ahead. This was certainly the case yesterday for the British pound.