As a new trader I have a question. It seems there is a direct correlation on the movement between EUR/USD and GBP/USD. That being said, what are the pros and cons, if any, in trading one pair over the other?
Cons: one will move more than the other. If you trade both short and loose you just lost twice as much. Waiting for both to give as signal and you will wait twice if not longer for a setup.
Pros: if you learn what you are looking for and how to trade it you now have very high probable trade setups with very high profit protental.
Also look at AUD/USD and NZD/USD they correlate very closely. Then throw in USDX into the mix and you are on to something. USDX is negatively correlated meaning it move in the opposite direction. But can give you some very handy info on when to place a trade and in what direction.