Cross pair

EUR/GBP(Chunnel)

EUR/GBP, the "Chunnel" (after the Channel Tunnel), is one of the lowest-volatility major crosses. It moves on the relative strength of the Eurozone and UK economies and tends to trade in defined ranges.

0.8 to 1.5 pips

Typical spread

40 to 65 pips

Daily range

$12 to $13

Pip value / lot

London open (3 to 6 AM ET)

Best session

What is EUR/GBP?

EUR/GBP pairs the Euro against the British Pound — the two largest European currencies. It is the most-traded EUR cross by volume and the highest-correlation cross to UK-EU macro divergence.

EUR/GBP is unusually range-bound for a major-class cross. Daily ranges of 40 to 65 pips are typical, and the pair often respects horizontal support and resistance on the 4H and daily charts for weeks at a time. This makes it a favorite for range-trading and mean-reversion strategies.

Base currency: EUR (Euro, Eurozone)
Quote currency: GBP (British Pound, United Kingdom)
Pip location: 4th decimal (0.0001)
Volume share: about 2% of daily global forex turnover

When to trade EUR/GBP

EUR/GBP's prime window is the London open (3 to 6 AM ET). Both home markets are active, and most of the day's directional move develops in this three-hour window.

Avoid the Asian and late-NY sessions — the pair drifts in 10 to 20 pip ranges with wider spreads and minimal directional bias.

Best session: London open (3 to 6 AM ET)
Avoid: Asian + late NY (12 PM ET onwards)

News events that move EUR/GBP

ECB and BoE rate decisions are the highest-impact events. When the two central banks diverge (one hiking, the other cutting or holding), EUR/GBP can move 80 to 150 pips on the announcement.

Eurozone and UK CPI prints are secondary drivers, typically producing 30 to 50 pip moves. UK-EU trade developments (Brexit aftermath, Northern Ireland protocol tweaks) can still produce sharp 30 to 60 pip moves on headlines.

Central banks: European Central Bank (ECB), Bank of England (BoE)
Key releases: ECB rate decisions, BoE rate decisions, Eurozone CPI, UK CPI, UK-EU trade events

Want the full event calendar? See the economic calendar, and look up unfamiliar terms in the forex glossary.

EUR/GBP FAQ

Why is EUR/GBP called "Chunnel"?

The nickname is a portmanteau of "Channel" and "tunnel," referring to the Channel Tunnel connecting France and the UK. It captures the geographic relationship between the two currencies.

Why is EUR/GBP so range-bound?

The Eurozone and UK economies are tightly integrated and have correlated business cycles. ECB and BoE policy tends to move together, limiting the divergence that drives directional currency moves. The pair often respects horizontal support and resistance for weeks.

When is the best time to trade EUR/GBP?

London open, 3 to 6 AM ET. Both home markets are active in this window and the bulk of the day's range typically develops here.

How did Brexit change EUR/GBP?

Brexit produced extreme volatility from 2016 to 2020 (some days saw 200+ pip ranges). Since the trade agreement settled in 2020, EUR/GBP has returned to its historical range-bound character.

What is the pip value on EUR/GBP?

About $12 to $13 per standard lot, varying with the GBP/USD rate. Higher than EUR/USD's $10 because the quote currency (GBP) is more valuable than USD.

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