The Best Scalping Strategies - Part 2 - EUR/GBP

When it comes to a successful Forex Scalping strategy we need a currency pair that is reliably range bound and lends it self well to scalping. As we have seen in part 1 of this series- not all currencies are automatically scalp-able. As a matter of fact most are not. Most of the Majors: EUR/USD, GBP/USD, USD/CHF are too wild a ride to take the risk. The notable exception is the USD/JPY - which even though it is a major currency pair is still scalpable - why that is so and what the advantages are, we will discuss in Part 3 of our Scalping Strategy series.

But back to the EUR/GBP - the currencies involved are of course the Euro and the British Pound. Since we are again talking about two currencies from the same Economic region there is stability built into the relationship that is one of the main characteristics of this currency pair.
Even though the British Pound was affected heavily by the economic crisis worldwide and in some ways more so apparently than the more stable Euro from a Forex scalping strategy point of view the EUR/GBP is one of our most trusted allies and together with the EUR/CHF the backbone of any successful scalping strategy.
In scalping we are looking for three things:

1. Rangebound - so the losses and risk stay small
2. but not dead - so we do get many daily small entries
3. Stable economies behind the currencies - so geopolitical news don't blow up in our faces

The EUR/GBP offers all three and is therefore a "two-thumbs-way-up" trade recommendation for an automatic Forex scalping trading system.