The London session is the leading trading session in the entire forex market. The forex trading time begins from 3:00 am to noon. According to the BIS report, the U.K. session contributes 43% of the total trading.
London plays a crucial role in controlling fluctuations due to Britain’s Bank of England, the central bank. This bank controls the policies around GBP and sets interest rates. Forex traders must stay ahead of the BOE’s changes as it affects the sterling pound and other pairs such as the EUR.
Professional traders need to understand that forex trends always originate from London. The need to use analyzing tools to identify opportunities using statistical trends and price movement. Some of the leading forex brokers in Britain provide technical traders with the right tools to identify when such opportunities arise.
The top traded pairing in the U.K. session is the GBP/USD, followed by the EUR/GBP pair. They are the most apparent pairs, especially during the overlap with the New York session.
The U.K. session has no obsolete best time to trade. However, the New York and London session overlap, providing a four-hour window period from 1300hours to 1700 hours EST. This period experiences the highest trading volume creating a good opportunity for traders to make profits.