I was interested in seeing the behaviors of pairs of currency pairs with a matching currency. In this case... The GBP/USD vs the EUR/USD. I didn't balance them out perfectly. Just subtracted one from the other.
The key thing you will notice is that the pairs of currency pairs trend and pattern pretty much the same as currency pairs.
One currency maintains strength over the other for a matter of hours before the trend reverses and the other maintains strength for a number of hours. It's like a game of catch up... If one pair trends far ahead of another for a few hours the other generally tries to catch up a bit. Especially with the GBP/USD and EUR/USD.
I am not interested in trading the pairs of currency pairs... But it's rather interesting to see they trade the same as currency pairs if they have at least one matching base currency. Same types of patterns and divergences and everything.
The key thing you will notice is that the pairs of currency pairs trend and pattern pretty much the same as currency pairs.
One currency maintains strength over the other for a matter of hours before the trend reverses and the other maintains strength for a number of hours. It's like a game of catch up... If one pair trends far ahead of another for a few hours the other generally tries to catch up a bit. Especially with the GBP/USD and EUR/USD.
I am not interested in trading the pairs of currency pairs... But it's rather interesting to see they trade the same as currency pairs if they have at least one matching base currency. Same types of patterns and divergences and everything.