I draw a moving average (100 days) on both charts Eur/Usd and Gbp/Usd. When the price crossed MA on Gbp/Usd it was a signal to buy currency not only on Gbp/Usd but also on Eur/Usd.
All charts on forex have some correlation between them. That means that all charts fluctuate together. First of all it is because all direct currency pairs use USD. For example, when Gbp meets some kind of support/resistance then it's probably touches Eur/Usd as well.
You can calculate how strong currently correlation is by using Microsoft Excel and CORREL() function. You need to get historical prices for both currency pairs and do the math.
Correlation varies from -1.0 to 1.0. The correlation is strong near 1.0 (or -1.0) and it's low around 0.
If you do the math then you'll see that all currency pairs affect each other.
That way if you trade on Eur/Usd then you can use Gbp/Usd as an additional indicator to your trading system. It is also necessary to know current correlation because if it's low then it's worth nothing. With Gbp/Usd and Eur/Usd it's seen by sight that correlation is strong enough.
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