In this article we will look at the uniqueness of the GBP / USD currency pair. GBP / USD stands for British Pound (GBP) and US Dollar (USD) currency pairs.
The quote of the currency pair indicates how much money is needed to buy 1 British Pound. GBP / USD is a trading instrument that is very popular in Europe, especially in the UK. GBP / USD is third among the most traded world currency pairs, which have daily trading income in 12% of all Forex market income. This currency pair is completely unpredictable and has strong instability. The fluctuations are short and unstable. Because the character is on the market, GBP / USD is called Cable.
Daily fluctuations in the currency pair reach 130 points on average. The low liquidity in this pair was observed only in the Asian region (averaging around 30 points). Therefore, novice traders are not recommended to start trading with this pair .. Many traders prefer EUR / USD to Cable. The British pound moves in the same direction as the EUR / USD currency pair but not always. Pound / Dollar movements can be completely different from Euro / Dollars in the period when certain news emerges regarding ‘Cable’. For example, the British government changes the interest rate through the central bank. Pound movement is the same as the movement of the Euro and Swiss Franc.
Everyone should be careful to trade with Pound because no one knows what surprises arise in connection with Pound movements. Pounds often move against the news; that when everything seems to support the currency, the value of the currency can go down. Many traders choose this pair to swap trading because of significant differences in the value of Pound and Dollar interest.