Four popular currency pairs offer British pound sterling traders a wide variety of short and long-term opportunities. The best times to trade these instruments are centered around key economic releases, when European and American exchanges keep all cross markets active and highly liquid. GBPUSD, often referred to as “The Cable”, a foreign exchange term used to describe the British pound vs the US dollar, is one of the oldest traded currency pairs. In July of 1866, after an earlier failed attempt, the first reliable exchange rate between the British pound and the US dollar was transmitted between the London and New York Exchanges.

Stay informed with real-time market insights, actionable trade ideas and professional guidance. This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice. Christine Lagarde brought the era of negative European interest rates to an end with the biggest rise in more than two decades on Thursday, in a move that failed to quell market panic over a looming crisis in Italy. Yahoo Finance Live's Rachelle Akuffo, Seana Smith, and Dave Briggs look at several of today's trending stocks. For a look at all of today’s economic events, check out oureconomic calendar.

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This means that the price of the GBP-USD at any given time represents the amount of US dollars it would take to exchange for one British pound. One of the largest and most commonly traded currency crosses on the forex market is the British pound sterling to the United States dollar. Often referred to as the "cable," in reference to the transatlantic telegraph wires connecting London and New York, GBP/USD represents nearly 15% of the total daily volume of transactions on the forex. With such pdotn/usd a formidable volume, GBP/USD is a definitive major pairing and also a benchmark by which exchange rate valuations are measured globally. Often referred to as the "cable", in reference to the transatlantic telegraph wires connecting London and New York, GBP/USD represents nearly 15% of the total daily volume of transactions on the forex. The GBP USD has an interesting history, as it represents currencies that have, at different times in history, been the world’s de facto reserve currency.

Fundamentals that move the GBP

This behaviour contradicted trend-oriented facets of technical analysis and proved that pound/dollar pricing was largely elastic in nature. During the initial stages of the COVID-19 contagion , the GBP/USD gained a modest 1%. Even though volatility throughout the first seven-months of the coronavirus was extreme, exchange rates regularly gravitated toward their 12-month median value (1.2462). CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Financial market and cryptocurrency trading and investing carry a high degree of risk, and losses can exceed deposits. Any opinions, news, research, analysis, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. The British Pound is also referred to as Sterling, with the GBP/USD pairing is referred to as Cable. Alongside with the U.S Dollar, Japanese Yen, and EUR, the Pound is the 3rd most held reserve currency. The Pound is also the 4th most traded currency in the FX markets. Cable is the 3rd most liquid currency pairing, accounting for 11% of total transactions in the FX markets.

As such, Swiss Re sees more rallies coming from all major central banks, including the Bank of England which cannot be left behind by the likes of the US Federal Reserve. 75.2% of retail investor accounts lose money when trading CFDs with this provider. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Currency Pairs and Trading Hours

You should understand how the pairs will move when either candidates gets the ticket. There is usually a lot of volume during the early session of the American period because that is when most economic numbers are released. The 30-minute chart below shows how volume increases during the European and American hours. GBP is the abbreviation for the British pound sterling, the official currency of the United Kingdom and its territories.

I’ll be looking for signs of exhaustion to start shorting, as the Federal Reserve will almost certainly remain extraordinarily tight with its monetary policy. For the past two months the GBP/USD exchange rate has embarked on a technical upward trend. This gauge displays a real-time technical analysis overview for your selected timeframe. Dollar is based on the most popular technical indicators, such as Moving Averages, Oscillators and Pivots. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Abundant liquidity makes it possible for traders to enter and exit the market with ease.

The trend index for the daily time-frame is slightly bullish with an overbought reading of the Overbought/Oversold index. Weekly and monthly stochastic indicators show a Sell bias with the short-term RSI reading Neutral. These readings show a pullback in bullish bias as some might feel as if a peak is near and that the recent upturn is due for a correction. Overall indicators show a slowdown in momentum, adjusting from Buy to Neutral. Between Monday and Wednesday the GBP/USD rate had been trading sideways, suggesting a wait-and-see approach ahead of the Federal Open Market Committee’s Wednesday announcement. Meanwhile, the Bank of England’s optimistic view of the British economy has allowed the British pound to not only appreciate against the dollar but to strengthen against each of the other six G10 currencies this week.

EURUSD price marches towards 1 0300 as ECB

He holds a bachelor's degree from the University of Miami and a master's degree in business administration. All services are free, so you to take advantage of the opportunities that Forex trading offers. On the other hand, a hawkish ECB surprise could trigger another dollar selloff and allow GBP/USD to gain traction. lexatrade I believe price is manipulating buyers right now and will continue short. Retracment should be completent on GBP/USD Now we look for a break and retest to find our short entry. In the example 2 possible way of getting in, one more aggressive and risky the second definitely more affordable and secure.

A pip is the smallest price increment tabulated by currency markets to establish the price of a currency pair. Financial news events produce two main benefits for trading the British pound. The first is an obvious trend, while the second is higher liquidity. Financial news can come at unpredictable times, but much of it is released on a regular schedule by financial institutions and governments. In this section, you will find important GBPUSD news, actionable trading ideas, and a live GBPUSD chart to help you understand the markets better.

Historic volatility is the standard deviation of the "price returns" over a given number of sessions, multiplied by a factor to produce an annualized volatility level. A "price return" is the natural logarithm of the percentage price changes or ln[Pt/P(t-1)]. A volatile market therefore has a larger standard deviation and thus a higher historical volatility value. Conversely, a market with small fluctuations has a small standard deviation and a low historical volatility value. Historical volatility is available on a daily chart, and on the Technicals Summary page for an individual ticker symbol/commodity contract. Historical volatility can also be used as a tool by traders who are trading only the underlying instrument.

Sterling has “broken to a fresh lower low, and is now set to test the 78.6 percent retracement” of its advance from Aug. 28 to Sept. 21, according to technical strategist Cilline Bain in London, referring Fibonacci analysis. You hereby agree that your demo account information will be shared with such representatives allowed to take contact with you. You hereby waive the benefit of Swiss banking secrecy in this respect towards the above mentioned persons and entities. Confidentiality of your personal data will be ensured throughout the group, regardless of the location of specific group units. Is poised to evolve upon completion of the Brexit transition process. Following its final departure from the European Union , the U.K.

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For example, a 9-period moving average is the average of the closing prices for the past 9 periods, including the current period. For intraday data the current price is used in place of the closing price. GBP/USD exchange rate consistency was put to the test during the 2020 coronavirus (COVID-19) pandemic. Amid widespread economic lockdowns and plunging FTSE 100 and NASDAQ 100 equities index valuations, the GBP/USD traded in an extended-but-stable range. There are also major financial events, such as Black Wednesday and Brexit, that impact the direction of the British pound for years.

The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity and a low spread.

Her expertise covers a wide range of accounting, corporate finance, taxes, lending, and personal finance areas. FOREX.com may, from time to time, offer payment processing services with respect to card deposits through StoneX Financial Ltd, Moor House First Floor, 120 London Wall, London, EC2Y 5ET. Earlier in the week, South Africa released its June CPI at 7.4% YoY vs 7.2% YoY expected forex trend and a June reading of “only” 6.5% YoY. I understand that I may not be eligible to apply for an account with this FOREX.com offering, but I would like to continue. Take control of your trading with powerful trading platforms and resources designed to give you an edge. Choose from standard, commissions, or DMA to get the right pricing model to fit your trading style and strategy.

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Optic fibre cables accompanied by satellites handle the Transatlantic communications today. As one of the most liquid currency pairs traders enjoy tight spreads, great liquidity and fills, and enough volatility to make trading the GBP/USD both interesting and profitable. When it comes to volatility, the pair often trades in a wider range on a daily basis when compared with other pairs. This obviously increases the potential to profit when trading the pair, although it also increases risk. As one of the most traded currency pairs traders will find a wealth of information about the GBP/USD, as well as a number of different ways to trade the pair, ranging from futures to CFDs. Mahmoud has been working fulltime in the Foreign Exchange markets for 12 years.

Furthermore, the British pound can be affected by the prices of some base metals, oil and other commodities. Trade 9,500+ global markets including 80+ forex pairs, thousands of shares, popular cryptocurrencies and more. Aayush has spent over a decade as a financial markets contributor and observer. He specializes in market strategies and technical analysis of the currency, commodities, Bitcoin, and Ethereum markets. The British pound rallied a bit during trading on Tuesday to pierce the 1.20 level again. "The most important central bank tightening cycle in decades has begun, and we expect more policy tightening this year and next," says Jerome Hegele, chief economist at Swiss Re Group.

The GBP/USD is the third most frequently traded currency pair in forex, nicknamed the Cable. It’s one of the oldest currency pairs, representing two economies - the United Kingdom and the United States. The value of the GBP/USD depends greatly upon the relative economic strength of each nation.The currency pair indicates how many US dollars are needed to purchase one Great Britain Pound . For example, if the pair is trading at 1.30, it means it takes 1.30 U.S. dollars to buy 1 Pound.The British pound/US dollar pair is one of the most liquid currency trades in the forex space. The tight bid-ask spreads, volume, and volatility, all ensure that the popularity of day trading of GBP/USD is only set to rise.

Trade popular currency pairs and CFDs with Enhanced Execution and no restrictions on stop and limit orders. Correlation analysis is an important tool to determine which pairs to trade with based on their movements. Therefore, the best time to day trade the GBP/USD is usually during the European session when the UK releases most of its economic data. Volume and volatility then increase during the American session.