Best Forex Pairs to Trade During the London Session

 

The London trading session is usually viewed as the most dominant and liquid period of the day for trading currencies. It is, by the way, the period with the greatest mixture of volatility, large trades, and chances for many traders. This blog post will analyse the reasons for London’s session importance, list the most traded currency pairs, and provide practical strategies — all these supported with data and trustworthy references.

Why the London Session Matters

1. Sheer Volume & Liquidity
   The London session ranks first in forex turnover. Per IG, it is responsible for approximately 35% of the worldwide forex trading volume.

Even higher percentages are given by other sources: PriceActionNinja states that nearly 43% of global forex volume takes place during the London session.

High liquidity results in tighter spreads, more rapid trade execution, and less slippage, which are all important factors for intraday and swing traders alike.

1. Overlap with Other Sessions

• Asian–London Overlap: There will be a time when the London market is active while some Asian markets (e.g., Tokyo) are already about to close.
• London–New York Overlap: Even more extensively, the London market intersects with the New York session that is just starting. This overlap is frequently associated with very high volatility as the presence of big players from both Europe and the U.S. is felt.

1. High Volatility and Predictable Trends
   Major economic news releases in Europe, such as ECB or BoE announcements, usually lead to significant trends in one direction. Besides, it is more probable for prices to break out and ranges to be more significant. For instance, IG observes that breakout tactics are getting more powerful in London sessions due to the heightened chance of major price changes.
2. Global Financial Hub
   London is still the leading centre for forex trading worldwide. According to a 2019 BIS (Bank for International Settlements) survey, the UK (mainly London) was responsible for 43% of the global FX turnover, as reported by the Bank of England. Bank of England

Due to this trading activity concentration, the major currency pairs, including the euro (EUR), British pound (GBP), U.S. dollar (USD), and Swiss franc (CHF), are highly active during these hours.

Top Forex Pairs to Trade During the London Session

The following list presents some of the top currency pairs that could be the focus of your trading activities during the London session, along with their respective reasons for being the market’s best performers in this trading window.

1. EUR/USD (Euro / U.S. Dollar)

• Why trade it: The EUR/USD currency pair is the most frequently traded in the whole world. Its high liquidity, along with a small spread, makes it the perfect candidate for the strategies applied during the London session. For example, DefcoFX emphasises EUR/USD as a top choice because of low spreads and high activity in the European hours.
• Volatility: As per PriceActionNinja, EUR/USD usually has a fluctuation of 80–120 pips in the London session.
• Strategy fit: It is a high-frequency trading, breakout trading, and day trading strategy that is greatly appreciated, particularly concerning macroeconomic announcements from the Eurozone.

1. GBP/USD (British Pound / U.S. Dollar) — also called “The Cable”

• Reasons to trade: This currency pair often yields a much higher price movement than other pairs and very pronounced reactions to economic data in both the U.K. and U.S. HowToTrade
• Volatility: It is said that the price of GBP/USD changes from 100 to 150 pips on average per day during the London session, according to PriceActionNinja.
• Appropriateness of the strategy: It is perfect for swing, breakout and volatility trading, especially around BoE meetings, UK inflation data, or U.S. economic surprises.

1. EUR/GBP (Euro / British Pound)

• Why trade it: This is a pure European cross — no USD involved — and the divergence between Eurozone and U.K. fundamentals affects it the most.
• Volatility: PriceActionNinja suggests that the usual pip movement during the London session is from 60 to 90 pips. PriceActionNinja
• Strategy fit: It is a perfect match for range trading or breakout strategies based on European data, as it is not much affected by USD-driven macro swings.

1. USD/JPY (U.S. Dollar / Japanese Yen)

• Why trade it: USD/JPY, even though it is very active during the Asian session, is still strongly liquid in the London session, and mainly because of the overlap with New York.
• Stability: The movements of this couple are generally smoother and more technical, which makes it less risky for those traders who want to trade with well-defined chart patterns.
• Strategy fit: Suitable for trend-following, breakout, and technical setups.

1. GBP/JPY (British Pound / Japanese Yen) — known as “The Beast”

• Why trade it: Among the volatiles during the London session, this pair comes on top because of the JPY crosses’ inherent risk-on/risk-off and the strength of the pound. PriceActionNinja refers to it as a pair with “huge pip potential.” PriceActionNinja
• Volatility: Different guides (‘HowToTrade’, for instance) state that GBP/JPY usually moves 150–200 pips on average during the overlap of the London-New York sessions that are particularly active.
• Strategy fit: It is the most suitable for the best traders. Use tight risk control, especially if you are trading breakouts or momentum-based strategies.

1. EUR/JPY (Euro / Japanese Yen)

• Why trade it: A different cross between Europe and Asia that takes advantage of liquidity in both markets. It can move smoothly and give good chances for breakouts. Forex Academy
• Volatility: The pip range on average through London can be, at times, fast and significant, as per PriceActionNinja. PriceActionNinja
• Strategy fit: Both types of traders, one dealing with ranges and the other with breakouts, will gain profit; trend tactics are commonly applied, particularly when major news brings about shifts in market direction.

1. USD/CHF (U.S. Dollar / Swiss Franc)

• Why trade it: The Swiss franc is frequently seen as a currency of “safe-haven”. The behaviour of USD/CHF is usually quite stable, but at the same time, it enjoys the liquidity of the London hours.
• Volatility: According to PriceActionNinja, the average daily ranges of USD/CHF in London hours move between 70–100 pips.
• Strategy fit: Great for hedging, playing the range, and also for breakout strategies, which have lower volatility.

Practical Tips for Trading During the London Session

1. Time It Well

• The London session is generally active from 08:00 to 17:00 GMT.
• The period from 09:00 to 11:00 GMT is considered to be the most attractive time as it is characterised by the highest volatility. PriceActionNinja
• Make sure to focus on the London–New York overlap (approximately 12:00–16:00 GMT) as it frequently causes strong directional moves.

1. Use Appropriate Risk Management

• In the case of the very volatile currency pairs like GBP/JPY, it would be prudent to use smaller lot sizes or tighter stops — the “beast” can make big moves.
• In the case of the less risky and more liquid pairs like EUR/USD, you can slightly increase the volume, but risk management should still not be overlooked.

1. Leverage Economic News

• Monitor closely the economic indicators that come from the Eurozone and the U.K. (for instance, GDP, inflation, changes in interest rates).
• Align your trading plans with an economic calendar that is in accordance with GMT.

1. Adopt Flexible Strategies

• Breakout strategy: It is ideal to trade at the opening of the London session and overlapping hours, as the liquidity inflows can cause strong movements in the market.
• Range strategy: It is the case that mid-session, the EUR/GBP or USD/CHF can provide good chances for range-bound trading.
• Trend-following: It is the case that technical patterns such as trendlines, moving averages, or RSI-based entries work well in London traders are active, especially.

1. Use Volume & Technical Tools

• Consider using volatility measures such as the Average True Range (ATR) or the Average Range per Hour.
• If your broker or platform offers it, use volume or order-flow tools to validate the strength of the breakout.
• Choose the appropriate chart timeframes: for day trading, use 5-minute or 15-minute charts; for swing trading, 1-hour or 4-hour.

Risks and Things to Watch Out For

Trading during the London session comes with its own set of risks that traders need to be mindful of. False breakouts are common; the presence of large liquidity does not always translate into clear, sustained trends. This is especially true around major economic reports, where sudden price spikes can quickly reverse. Similarly, slippage and execution risk remain a concern.

Even though London is one of the most liquid forex markets, during critical announcements, orders may not execute at expected prices, so it’s essential to use a broker with reliable execution. Another pitfall is overtrading. The fast-paced activity in London can tempt traders to take on too many positions, which can erode profits and increase risk. Finally, psychological pressure can play a significant role.

Rapid price movements may challenge discipline, and entering trades emotionally rather than strategically can lead to costly mistakes. By staying aware of these risks and maintaining a structured approach, traders can navigate the London session more effectively.

Final Thoughts

The London session is considered to be the richest trade area for forex trading. The market’s share in global volume (approximately 35%-43%, depending on the source) IG+2PriceActionNinja+2, together with the overlapped timings of the markets, results in major possibilities.

For the majority of traders, the most interesting pairs during this session are EUR/USD, GBP/USD, EUR/GBP, USD/JPY, GBP/JPY, EUR/JPY, and USD/CHF. These pairs are characterised by high liquidity, volatility patterns that can be predicted, and strong reactions to economic events.

If you adapt your strategy to the specific London session features — by emphasising timing, risk control, and suitable currency pairs — you will be able to take advantage of one of the most powerful forex trading periods.