The GBP/USD is a highly and vastly traded currency pair in the Forex market. The GBP, also known as the Great Britain Pound, is among the oldest currencies in circulation to date. The USD, or United States Dollar, is the official currency for the United States of America. Together they make the GBP/USD currency pair.
The United Kingdom and the United States are the largest single country market in the world due to their banking and financial systems, therefore making the GBP/USD a popular pair to trade. Movements in value of the GBP/USD can be attributed to the degree of difference in interest rates that occur between the Bank of England’s (BoE) central rate and the Federal Reserve’s rate. Additionally, economic growth and social situations in the UK and the U.S can affect the price, causing it to rise or fall.
The GBP/USD comprises 9% of the total daily trading volume, making it number 3 among the most traded currency pairs.
Because this pair is traded against the US dollar, the most active trading hours would be during New York trading session – the session with the highest volume of trades.
The GBP/USD is known for having a wider price range when matched up to other currency pairs.
GBP/USD Trading Features
The high liquidity of the GBP/USD lets traders take advantage of price movements and variations 24/5.
The GBP/USD is one of the main currencies traded using leverage. It is classed as one of the majors.
Although the GBP/USD can have large price movements, it proves to be a reliable pair due to its continuous market trends and patterns.