Right now I kinda got my head messed up and I would like to hear some suggestions. A logical assumption would be that someone uses EUR/GBP in order to check which of the two currencies would be the strongest against the dollar. In this sense we would use EUR/GBP as a guide.
However, EUR/GBP is also traded the other way around. People watch the EUR/USD and GBP/USD and make entry decisions for EUR/GBP based on which pair is about to hit the strongest levels/bullish/bearish market structure. In this sense EUR/GBP is traded itself and the EUR/USD and GBP/USD are generating the chart for EUR/GBP.
This last one however is saying EUR/GBP is not working correctly as a guide. It is simply the result of levels/market structure from the major EUR/USD and cable pair. Now I am well aware obviously "EUR" and "GBP" are traded against other currencies besides USD as well but this doesn't take away that the majors are generating the core of EUR/GBP.
Would anyone like to share their experiences on this matter?
However, EUR/GBP is also traded the other way around. People watch the EUR/USD and GBP/USD and make entry decisions for EUR/GBP based on which pair is about to hit the strongest levels/bullish/bearish market structure. In this sense EUR/GBP is traded itself and the EUR/USD and GBP/USD are generating the chart for EUR/GBP.
This last one however is saying EUR/GBP is not working correctly as a guide. It is simply the result of levels/market structure from the major EUR/USD and cable pair. Now I am well aware obviously "EUR" and "GBP" are traded against other currencies besides USD as well but this doesn't take away that the majors are generating the core of EUR/GBP.
Would anyone like to share their experiences on this matter?