The GBPUSD currency pair, often referred to as “Cable,” is one of the most widely traded currency pairs in the foreign exchange (forex) market. It represents the exchange rate between the British Pound Sterling (GBP) and the United States Dollar (USD). In this pair, the GBP is the base currency, and the USD is the quote currency.
Here’s what you need to know about the GBPUSD currency pair:
Base and Quote Currency: In GBPUSD, the GBP is the base currency, and the USD is the quote currency. This means that the exchange rate tells you how much one British Pound is worth in US Dollars.
Exchange Rate Fluctuations: The exchange rate for GBPUSD fluctuates continuously due to various factors such as economic data releases, geopolitical events, interest rate differentials, and market sentiment.
Pip: A pip is the smallest price movement in the exchange rate for most currency pairs, including GBPUSD. It is typically equivalent to 0.0001. For example, if the GBP/USD exchange rate moves from 1.3000 to 1.3001, it has moved up by one pip.
Volatility: GBPUSD can experience significant volatility, especially during major economic announcements, political events, or times of uncertainty. Traders and investors often monitor this pair closely due to its volatility.
Correlations: The GBPUSD exchange rate can be influenced by global economic trends and events. It may have correlations with other currency pairs and assets, such as EUR/USD, USD/JPY, and commodities like oil and gold.
Trading Hours: The forex market operates 24 hours a day, five days a week, with trading sessions in major financial centers around the world. The most active trading hours for GBPUSD typically coincide with the overlap of the London and New York trading sessions.
Factors Affecting the Pair: Various factors can impact the GBPUSD exchange rate, including economic indicators (GDP, inflation, employment data), central bank policies (such as the Bank of England and the Federal Reserve), political events (Brexit, U.S. elections), and global economic conditions.
Brexit: The United Kingdom’s decision to leave the European Union, known as Brexit, had a significant impact on the GBPUSD exchange rate. News and developments related to Brexit negotiations and its aftermath played a key role in the pair’s movements.
Trading Strategies: Traders and investors use various strategies when trading GBPUSD currency pair, including technical analysis, fundamental analysis, and sentiment analysis. Risk management is crucial due to the pair’s volatility.
Long-Term Trends: Over time, the GBPUSD exchange rate has exhibited long-term trends and cycles. Traders and investors often analyze historical data and trends to make informed decisions.
GBPUSD currency pair, today’s tradingview as follows-
- Although the bears are in control, the stalling negative momentum indicates a turnaround is possible.
- We are trading at oversold extremes
- This is positive for short term sentiment and we look to set longs at good risk/reward levels for a further correction higher.
- Although the anticipated move higher is corrective, it does offer ample risk/reward today.
- We look to buy on dips.
Recommendations: Buy/Buy limit @ 1.14600 Take Profit: 1.15600
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gbpusd analysis on dated 16-9-2022
