London Open Strategy: Trading the First Hour's Momentum
By Forexiz Team
The forex market doesn't truly sleep. But it does doze. The Asian session (00:00–07:00 GMT) is quiet on most EUR and GBP pairs. When London opens at 08:00 GMT, institutional flow explodes — volumes spike, spreads tighten, and momentum often sets the direction for the entire day.
Why the London Open Matters
London is the world's largest forex trading centre, handling ~38% of daily global forex volume. When European institutional traders arrive at 08:00 GMT, they execute large orders that were queued overnight. This creates directional momentum that retail traders can ride.
- Most EUR/USD, GBP/USD, and EUR/GBP volume occurs during London hours.
- Spreads narrow to their tightest at the London open.
- Major economic data releases (German CPI, UK GDP, ECB announcements) typically coincide with London hours.
- The Asian session often creates a range that the London open breaks out of.
The Asian Range Breakout Strategy
This is the most widely-used London open strategy. The idea: the Asian session creates a consolidation range. London breaks it. Trade the breakout.
Step 1: Identify the Asian Range
On your Forexiz chart, switch to the 15-minute or 1-hour time frame. Mark the high and low of price action between 00:00 and 07:00 GMT. This is your Asian range.
Step 2: Wait for the Breakout
Watch the 08:00–09:00 GMT window. If price breaks cleanly above the Asian high, it signals bullish London momentum. If it breaks below the Asian low, bearish momentum. "Cleanly" means a candle closes beyond the level — not just a wick.
Step 3: Enter on the Breakout or Retest
Two entry approaches:
- Aggressive: enter immediately when the candle closes beyond the Asian range boundary.
- Conservative: wait for price to break out, pull back to the broken level (retest), and bounce. This is a higher-quality entry but you miss some moves.
Step 4: Set Stop Loss and Take Profit
- Stop Loss: 5–10 pips below the broken Asian high (for a long) or above the broken Asian low (for a short).
- Take Profit: 1.5× to 2× the Asian range height, measured from the breakout point. If the Asian range was 30 pips high, target 45–60 pips profit.
The London open strategy has the highest success rate when there's been clear directional bias established by the previous New York close. If the NY session closed strongly bullish, look to trade the London breakout long.
Additional Filters
1. News check
Check the economic calendar before the London open. High-impact news releases (like UK CPI or German PMI at 08:30 or 09:00 GMT) can create false breakouts followed by reversals. Consider avoiding the strategy on major news days until you're experienced.
2. Trend alignment
Check the daily or 4-hour chart. Is the overall trend up or down? Trade breakouts in the direction of the larger trend. If EUR/USD has been in a daily downtrend, prioritise bearish London breakouts.
3. Range size
Very small Asian ranges (under 15 pips on EUR/USD) can result in choppy, false breakouts. Very large ranges (over 60 pips) suggest news has already driven the move. The ideal range is 20–45 pips.
The First 15 Minutes — Danger Zone
The first 10–15 minutes of the London open can be chaotic — market makers frequently run stops in both directions before establishing the real direction. Many experienced London traders wait until 08:15 or 08:30 GMT before entering, to let the initial noise clear.
Trading the London Open on Forexiz
Forexiz is web-based — no download required. You can access it from any browser at 08:00 GMT. Use the live chart on EUR/USD or GBP/USD, draw your Asian range, and watch for the breakout. The platform's real-time execution means your order fills at the price you see.