Advanced FX Strategies: Carry, Momentum, and Mean-Reversion Models Applied to Sterling Crosses
Foreign exchange markets have evolved far beyond simple directional bets on currency pairs. Today, sophisticated traders and institutional participants rely on structured models to navigate volatility, macroeconomic shifts, and changing market regimes. Among these approaches, carry, momentum, and mean-reversion strategies stand out as time-tested frameworks that can be applied with nuance to sterling crosses such as GBP/USD, EUR/GBP, GBP/JPY, and GBP/AUD.Sterling crosses are particularly interesting because they sit at the intersection of global capital flows, UK-specific economic dynamics, and shifting risk sentiment. This makes them fertile ground for advanced FX strategies—provided traders understand both the mechanics of the models…
