During the Asian session, European currencies usually move in a narrow range. When London opens, volume floods in and price often breaks out of that range with momentum. The London breakout strategy tries to catch that first strong move.
Step 1: mark the Asian range
On a 15-minute chart of GBPUSD or EURUSD, mark the high and low between 00:00 and 07:00 UTC (adjust by one hour in the northern winter if you want to align with the London open at 08:00 UTC). That is your range.
Step 2: filter the range
- Skip days when the range is unusually wide (for example more than about 40 pips on GBPUSD): much of the move already happened.
- Skip days with high-impact UK or euro-zone news in the first hour of London.
- Prefer days when the daily trend is clear: trade only the breakout in that direction.
Step 3: entry
Wait for a 15-minute candle to close beyond the range high (for longs) or low (for shorts) after 07:00 UTC. Enter on the close. Avoid buy-stop orders exactly at the high: the first spike is often a stop hunt.
Step 4: stop and target
- Stop at the middle of the Asian range, or at the opposite side if the range is narrow.
- Target 1.5–2 times the distance to the stop, or the next important level on the 4-hour chart.
- If the trade has not reached 1R by the New York open, close it: the London momentum is gone.
Why it fits prop firm rules
The trade has a defined start and end time, one entry and a clear stop, so it is easy to keep within the daily loss limit. It also finishes before US data, which keeps you away from the news windows.