The London session range strategy is one of the most effective methods for capturing momentum trades during the most active part of the forex trading day. The London open marks the beginning of heightened liquidity, volatility, and institutional participation. When traded correctly, the London range provides traders with clear structure, breakout levels, and explosive moves, especially when paired with the Asian session consolidation.

This guide explains how to define the London range, how to trade breakouts or reversals from it, and how to integrate this strategy into a disciplined trading routine.

Why the London Session Is Crucial

The London session (07:00 to 16:00 GMT) overlaps with the end of the Asian session and the start of the New York session, making it the most liquid and volatile time of the trading day. Key characteristics:

• Major news releases from the UK and Europe
• High institutional trading volumes
• Significant breakouts and trend initiation
• Ideal conditions for momentum and breakout trading

The first hour of the session (07:00–08:00 GMT) is especially important for building the London range.

How to Trade the London Session Range Strategy

The strategy revolves around identifying the range from the first hour of the London session and trading breakouts, fakeouts, or retests of this range depending on market structure and bias.

1. Define the London Range

Mark the high and low of the 07:00–08:00 GMT candle(s) on your chart. This is your London range box.

Guidelines:

• Use 15M or 30M candles for precision
• Only draw the range after the hour has closed
• Do not enter trades during the range-building hour

2. Identify Breakout or Reversal Scenarios

Once the London range is defined, the market typically does one of the following:

A. Break and Continuation

• Price breaks out of the range and continues strongly in that direction
• Confirmation comes from large-bodied candles, increased volume, or momentum indicators

B. False Breakout (Liquidity Grab)

• Price spikes above/below the range, grabs stops, then reverses and breaks out in the opposite direction
• Look for pin bars or engulfing patterns at the range boundaries

C. Range Continuation

• Price remains within the London range until the NY session
• Trade the range using mean reversion strategies

3. Entry and Risk Management

Breakout Entry

• Enter on candle close outside the range or on retest of the breakout level
• Use momentum indicators (RSI, MACD) to confirm

Reversal Entry (Fakeout Setup)

• Enter when price closes back inside the range after false breakout
• Look for rejection candles (e.g. pin bars, engulfing)

Stop-Loss Placement

• Breakout: Just inside the opposite side of the range
• Fakeout: Beyond the wick of the trap candle

Take-Profit Levels

• 1x or 2x the size of the London range
• Previous swing highs/lows
• Major session levels or round numbers

Always aim for a 2:1 risk-to-reward ratio.

4. Add Confluence for Stronger Setups

• Asian session range: London often breaks out of the Asian range
• Volume surge at breakout confirms strength
• Fibonacci retracement levels if the breakout is a continuation
• News catalysts like UK GDP, CPI, or ECB announcements can fuel moves

5. Best Pairs and Timeframes

Currency Pairs:

• GBP/USD
• EUR/USD
• GBP/JPY
• EUR/JPY
• GBP/AUD

Timeframes:

• 15M for structure
• 1H for confirmation
• 4H for overall bias

Summary Table

Element	Details
Range Time	07:00–08:00 GMT
Entry Types	Breakout, retest, or fakeout reversal
Best Tools	Candlestick patterns, RSI, MACD, volume
Stop-Loss	Inside opposite edge of the range
Take-Profit Targets	1–2x range size, swing points, round numbers
Confirmation	Breakout strength, trap candle, rejection

Conclusion: Mastering the London Session Range Strategy

The London session range strategy is a structured, high-probability approach for traders looking to trade momentum and volatility in the most active part of the forex day. By marking the first hour’s high and low, waiting for confirmation, and managing risk based on structure, traders can consistently capture strong directional moves with minimal ambiguity.

To refine your skills in London session trading and master price action techniques used by professionals, enrol in our expert-led Trading Courses at Traders MBA and trade the open like an institutional pro.