ICT Decoded · EURGBP for Relative Strength (EURUSD vs GBPUSD)
How Do You Use EURGBP for Relative Strength?
By Steve H — reads every firm’s official rulebook, checks prices and codes daily, and maintains the Enigma Score · Methodology · Editorial policy · Last updated November 1, 2026
ICT concepts were created and are taught by Michael J. Huddleston, The Inner Circle Trader (X · YouTube). This lesson is FundedEnigma’s own summary, not affiliated with or endorsed by ICT.
In short: EURGBP is EURUSD divided by GBPUSD, so when it rises the euro is doing better than the pound against the dollar. In the New York morning it matched the pair that did better on 698 of 721 mornings, because it is arithmetic. But London's or yesterday's EURGBP direction was about a coin flip for what came next.
EURGBP for Relative Strength: Does It Tell You EURUSD or GBPUSD? (ICT, Tested) · 5:14 · published November 1, 2026 · part of the ICT Concepts Decoded playlist
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Key facts: EURGBP and relative strength at a glance
| Part | What it means here |
|---|---|
| The fraction | EURGBP = EURUSD ÷ GBPUSD |
| EURGBP up | The euro did better than the pound against the dollar: EURUSD beat GBPUSD in percent, almost exactly |
| New York morning (8:00 to noon) | EURGBP's direction matched the pair that did better on 698 of 721 mornings; the rest were near ties |
| Same-way mornings | The two pairs moved the same way on about four mornings in five; then EURGBP typically moved about half as much |
| London's direction | Matched the New York morning's leader about 48 times in 100 |
| Yesterday's direction | Repeated today about 48 times in 100 |
Last verified 2026-11-01. Data: free Yahoo Finance hourly quotes (EURUSD, GBPUSD, EURGBP), New York time, January 15, 2024 to October 29, 2026; hourly closes only; indicative prices, no volume, about two years of history; the three quotes differ by about 2.6 pips at the same hour.
On October 14, 2026, from 8:00 in the morning to noon New York time, the dollar rose. EUR/USD fell about six tenths of a percent; GBP/USD fell almost nine tenths. Same dollar, but the pound was the weaker one, and one chart showed it in a single line: by noon, EUR/GBP had risen about a quarter of a percent.
Why does EURGBP show relative strength?
Because EURGBP is a fraction: EURUSD divided by GBPUSD. When EURGBP rises, the euro is stronger than the pound against the dollar, and EURUSD beats GBPUSD in percent, almost exactly.
Comparing correlated markets for relative strength and weakness is an ICT idea, from Michael J. Huddleston, as in our SMT divergence lesson. Using EURGBP to choose between the two pairs is a way some ICT students apply it. For the dollar side, see our lesson on currency futures and the dollar index.
What does EURGBP show in the New York morning?
Which pair is doing better, as it happens. In the New York morning, from 8:00 to noon, EURGBP's direction matched which pair did better in percent, the one that gained more or lost less, on 698 of 721 mornings. The rest were near ties, decided by quote timing. That is arithmetic, not a signal: it is the same information as putting both charts side by side, in one line.
The two pairs moved the same way on about four mornings in five. On those mornings EURGBP typically moved about half as much as when they split.
What does it look like on real charts?
Example 1: a dollar-up morning (October 14, 2026)
- At 8:00, EUR/USD is at 1.11957 and GBP/USD at 1.32659.
- By noon, EUR/USD is down 0.61% and GBP/USD down 0.87%. EUR/GBP rose from 0.84368 to 0.84581: the pound was the weaker one.
- But in London, from 2:00 to 8:00, EUR/GBP had fallen, pointing to a weaker euro. New York did the opposite.
Example 2: a dollar-down morning (August 1, 2025)
- A US jobs report morning. This time the dollar falls.
- From 8:00 to noon, EUR/USD rises about 1.3% and GBP/USD about 0.8%. EUR/GBP rises about 0.55%: the euro was the stronger one.
- Here London had pointed the right way: EUR/GBP rose from 2:00 to 8:00. One morning London was right, the other it was wrong.
Does EURGBP tell you in advance which pair will lead?
Not on our data: about a coin flip. We checked London's EURGBP direction, from 2:00 to 8:00, against which pair led the New York morning.
- London's direction matched on about 48 mornings in 100, between 47 and 50 every year. On the biggest London moves, about 50. On mornings when both pairs moved the same way, about 48.
- Yesterday's EURGBP direction repeated today about 48 times in 100. The trend over the previous three to twenty days, about 48 to 51.
Two years of hourly data rule out an edge bigger than about four in a hundred, not every edge. But on this data, EURGBP described the morning; it did not forecast it.
How do you use it in your own charting?
As a live gauge. Keep EURGBP next to the two pairs, and read the moves in percent. More concepts in the series are on the ICT Concepts Decoded hub. If you trade with a prop firm, you can look up a firm's rules on the challenges page or set two firms side by side on the compare page. Affiliate disclosure: FundedEnigma earns a commission from some of the firms on this site when you sign up through our links or codes, at no extra cost to you.
Frequently asked questions
Is EURGBP equal to EURUSD divided by GBPUSD?
Yes, as a cross rate. On our free hourly quotes the three differed by about 2.6 pips at the same hour, because they are quotes taken at slightly different moments.
Which is stronger, EURUSD or GBPUSD?
EURGBP shows it as it happens: when EURGBP rises, EURUSD is doing better than GBPUSD in percent.
Does London's EURGBP move predict New York?
Not on our data: London's EURGBP direction matched the New York morning's leader about 48 times in 100.
Should I compare forex moves in pips or percent?
In percent. EURUSD and GBPUSD are priced differently, so the same pip move is a different size for each.
Why does GBPUSD sometimes move more than EURUSD?
When the pound is the weaker (or stronger) of the two against the dollar, GBPUSD carries more of the dollar's move; EURGBP shows that in one line.
Sources
- Data: free Yahoo Finance hourly quotes (EURUSD, GBPUSD, EURGBP), New York time, January 15, 2024 to October 29, 2026; hourly closes only; indicative prices, no volume, about two years of history; the three quotes differ by about 2.6 pips at the same hour.
- Concept: comparing correlated markets for relative strength and weakness (SMT), as taught by ICT (The Inner Circle Trader, Michael J. Huddleston). Using EURGBP to choose between the two pairs is a way some ICT students apply it. The statistics, examples and charts on this page are our own.
- Video: EURGBP for Relative Strength: Does It Tell You EURUSD or GBPUSD? (ICT, Tested), FundedEnigma.
Last verified: 2026-11-01. Written by Steve H.
Disclaimer: This page is for education only and is not financial advice. It does not describe any firm's rules. Trading forex and futures involves substantial risk of loss. Past price behaviour does not guarantee future results.
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