GBP/USD intraday seasonality overview, 2003-2010

Source: forexautomaton.com

This GBP/USD report continues a new series of reports about intra-day "seasonality" effects in FX, gathering facts on the ground for an upgrade of the hour-scale algorithmic forecasting system. From the point of view of this approach and the features it reveals, GBP/USD is somewhat similar to EUR/USD. Like in other pairs studied so far, the statistically preferred time to bet on a trend reversal in GBP/USD appears to fall on the morning hours of the Asia-Pacific trading session. Evidence for that comes from the comparison of temporal distribution of daily extremes with temporal distribution of volatility, and from time dependence of autocorrelations of logarithmic returns with 1-hour lag.


Read more...