Buying Cross Pairs & multiple pairs

[pimpinpips]

Hopefully some forum members can chime in on my question. At approx. the same time (2 minutes apart) I Bought/Sold the following pairs:

EUR/GBP Sold
GBP/USD Bought

I’ve noticed that when one pair increases, usually the other decreases. So a couple of questions:

1. Did I hedge the two pairs?
2. Am I essentially working with the EUR/USD?

[daydreamer65]

It’s all explained here:-

Currency Crosses - College: Currency Crosses - The Bastard Step Children of Forex - Beginner’s Guide to Forex Trading, Free Forex Education, Learn to Trade Forex, Forex Training - BabyPips.com

[stucros]

EUR/GBP Sold
GBP/USD Bought

I’ve noticed that when one pair increases, usually the other decreases. So a couple of questions:

1. Did I hedge the two pairs?
2. Am I essentially working with the EUR/USD?

that means you bought gbp against the euro and bought gbp against the usd. I wouldn�t really say you are hedging anything unless you are short gbp elsewhere. It�s strange that you have witnessed an inverse relationship between the two i would say it would only be short term

[rhodytrader]

… It�s strange that you have witnessed an inverse relationship between the two i would say it would only be short term

The inverse relationship seen between the pairs in the price moves is an indication of general action in the GBP. Given that the two positions end up essentially mean a double long position in GBP, that could be a dangerous set-up if the GBP goes south.