Euro, Yen and Pound in Focus as London FX Opens
Euro, yen, and pound take centre stage as London FX opens. These majors drive early volatility. Traders watch for sentiment clues. Risk-on or risk-off flows often emerge here. In this morning’s forex session, David and I started with a look at the EUR/CAD. This is a pair I highlighted a few days ago on my site. It is an interesting confluence of the fundamental, the technical, and the relational. We explain this in great detail in the Quantum Trading forex education program.
Why These Currencies Matter at London Open
London overlap brings high liquidity. Euro reacts to ECB hints. Yen reflects safe-haven demand. Pound ties to UK data. Volume price analysis (VPA) spots conviction—high volume on moves confirms direction.
Practical Trading Insights
Focus on EUR/USD, USD/JPY, and GBP/USD. Currency strength indicator ranks them quickly. Quantum matrix on MT5 or NinjaTrader highlights relational extremes. Anna Coulling’s VPA approach navigates open-hour noise effectively.
Euro, yen, and pound in focus deliver opportunities. Quantum indicators make spotting flows at London FX open simple and reliable. Stay prepared for early session momentum.
Price Agreement
We then moved on to consider the strong agreement on prices for both the euro and the Japanese yen. The start of the European session was notable for the congestion phases building around the volume point of control on the faster charts. It is at these points that markets are in price agreement. Here, the VPOC itself serves as the market’s fulcrum, with no bias. The analogy here is of a see-saw, with both sides of equal weight. Once bearish or bullish sentiment develops. This then moves the price action away from the volume point of control and is driven by volume as the breakaway trend then develops. At such times, patience is the key. We have to wait for the trend to develop, which is then confirmed by volume price analysis. At the same time it is supported by the Quantum Trading tools and indicators.
London Open
Ahead of the London open, the British pound ( yellow line on the currency strength indicator) was heavily overbought, but continuing to move higher before rolling over on the 5 minute time frame as a speculative reversal position developed with the yen moving firmly lower. However, with the open so close, the prospect of a reversal is always likely with a trap move as London markets open with an associated surge in volume. The pair continued higher to 148.20 which is where it stalled as I suggested in the session, and has since fallen back to the volume point of control on the 5 minute chart which remains anchored at 147.98.
Be Careful of Session Crossover Volatility Traps in Europe and London
Forex sessions overlap creates excitement. The European open transitions into London. Liquidity surges. Volatility spikes. This draws traders in. But beware—many spikes are traps. False breakouts catch the impatient.
Why Crossover Periods Create Traps
European countries open sequentially. Germany, France, then UK. News or data releases cluster. Price gaps or spikes. Traders chase momentum. But low volume on moves reveals weakness. Professionals fade these—selling into buying or buying into selling.
Volume price analysis (VPA) spots traps early. High price on low volume = no conviction. Reversal often follows on volume spike.
London Overlap Amplifies the Risk
London session (8:00 GMT) overlaps Europe. Highest daily volume. Majors like EUR/USD or GBP/USD swing wildly. FOMO drives chasing. Quantum volatility indicator on MT5 or NinjaTrader flags spikes. High readings warn of potential traps.
How to Avoid Volatility Traps
Wait for volume confirmation. Low volume spike—stay out or fade. High volume continuation = real move. Quantum Trend Monitor aligns direction. Currency strength shows relational extremes.
Anna Coulling’s VPA approach teaches patience. Quantum tools make spotting traps reliable.
Session crossovers in Europe and London create volatility. But many are traps. VPA with Quantum indicators keeps you safe. Trade conviction, not noise.
By Anna Coulling
Creator of Volume Price Analysis