GBP/USD Outlook: 21st January 2021 United Kingdom – Consumer Price Index On Wednesday, at GMT 7:00 a.m., the UK’s Office for National Statistics released the year-over-year Consumer Price Index (CPI). It measures the changes in the price of goods and services acquired by consumers. The CPI basically measures the inflation level in the economy. This […]read more
Forecast & Technical Analysis
what is the GBPUSD?
GBP/USD (British Pound vs US Dollar) is the third most traded currency pair in the world. The pair is in the category of major currency pairs and represents Great Britain and the United States of America, the two giant economies of the world. The GBP/USD quote determines the value of 1 British pound for x us dollars. For example, if the quote is 1.1920 that means you will need 1.1920 US dollars to buy one British pound.
Why GBP/USD is called “cable”?
The pair’s other name is “Cable” which refers to the first transatlantic cable that is electronically connecting the two countries since the 19th century.
GBP/USD has a very reasonable intraday trading range (70 pips on average) which makes it ideal for day trading, scalping, and even for long and medium-term trading. Its standard lot size is 100,000, however, you can also trade small quantities as nearly all retail Forex brokers provide mini and micro lot options on their trading platform. As a trader, knowing the pip value beforehand is important as it helps you to quickly calculate the profit and loss. The pip value of the GBP/USD on a standard lot is 10 US dollars. The Cable spread is usually is very competitive mainly because it is a major currency pair and has enormous liquidity.
The economic policies of the UK and the US affect the GBP/USD value. For example, the higher interest rate in the US drags the pair value lower. Likewise, better economic conditions and higher interest rates in the UK positively impact the pair. During the 2008 recession, the cable made a historical high of 2.004 mainly because the US dollar remained under pressure on Federal Reserve stimulus measures. However, towards the end of the recession, the US dollar made a comeback and the Cable subsequently dropped below 1.1600. Later in 2016 when the UK decided to leave the EU in a referendum the cable once again lost over 20% in just a month.
It this very important to keep in mind that in the post-Brexit scenario, GBP/USD strongly reacts to the news that relates to the Brexit deal between the UK and the EU.
BrokerTrending.com provides you with the Latest British Pound(GBP) to Dollar (USD) forecasts. Find here a technical analysis on a weekly basis on the currency pair GBP/USD.
GBPUSD got new support on Thursday morning, although confidence in the fundamentals of the UK economy is still noticeably fragileread more
GBPUSD rose in trading on Tuesday, as the dollar stabilized after its recent rally, which allowed the British currency to recover of losses.read more
GBPUSD rose on the first trading day of 2021, surpassing the level of $ 1.37 for the first time since May 2018read more
GBPUSD witnessed a decline during morning trading in the European market, recording the third consecutive daily declineread more
GBPUSD rose during Monday’s trading, amid growing hopes that Britain and the European Union would secure a free trade agreementread more
GBPUSD is trading above $1.3400 for the first time in 12 weeks on Tuesday as market participants remained optimistic that a deal on Brexit could be reached this week, despite the lack of negotiations progress. GBPUSD rallied above $1.3400 with the dollar’s weakness, reaching its highest level in three months and a 0.6% gain today. […]read more
GBPUSD Weekly Outlook: 23rd November 2020 GBPUSD expanded its gains to record the second daily rise and its highest level in two and a half months. These broad gains prompted optimistic news related to the potential Coronavirus vaccine, which encouraged Uk forex investors to buy high-risk assets. And also supported gains The British Pound advances […]read more
GBP/USD Weekly Outlook: 18th November 2020 GBPUSD continued to achieve its gains recording its fourth consecutive daily rise and its highest level in a week. These successive gains come in light of the continued decline of the US dollar. In addition to the increasing hopes for reaching a final trade agreement between the United Kingdom […]read more
GBP/USD Weekly Outlook: 14th October 2020 United Kingdom – Claimant Count Change On Tuesday, at GMT 7:00 a.m., the UK’s Office for National Statistics released the Claimant Count Change figure. It measures the changes in the number of people claiming unemployment-related benefits during the previous month. It is the first fundamental indicator of the month […]read more