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
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 Weekly Outlook: 5th October 2020 GBPUSD rose during forex trading in the United Kingdom on Monday, due to renewed optimism in the markets that an agreement could be reached between the United Kingdom and the European Union on reformulating future relations between the two parties after the implementation of the “Brexit”. GBPUSD had received […]read more
GBPUSD Outlook: 21st September 2020 GBPUSD retreated in the European market on Monday to continue its losses for the second day in a row, moving away from the highest level in a week, due to the high cases of Coronavirus in the United Kingdom, and the British government’s thinking about imposing a health ban again, […]read more
GBPUSD Forecast – 15th September 2020 GBPUSD rose in forex trading on Tuesday, following the release of positive economic data, which is mostly better than analysts’ expectations. Government data revealed that the change in unemployment benefits amounted to 73.7 thousand applications, while expectations indicated that the level of 99.5 thousand applications would be recorded. The […]read more
GBPUSD rose by 19:48 GMT by 1.1% to 1.3248, and the day’s high was recorded at 1.3249 and the lowest price was at 1.3097. Today, post-Brexit talks between United Kingdom and Brussels were resumed, with hope of reaching a trade agreement between two parties next month. The chief European negotiator, Michel Barnier, will meet with […]read more
GBPUSD rose during trading today, Friday, in light of the uncertainty about global economy due to the continuing of “Coronavirus” crisis. Russian President “Vladimir Putin” announced earlier this week that it had registered first vaccine in the world to prevent Coronavirus, but countries led by United States questioned its effectiveness and safety of use. European […]read more
GBP/USD Forecast & Technical Analysis United Kingdom – Public Sector Net Borrowing On Tuesday, at GMT 6:30 a.m., the UK’s Office for National Statistics released the public sector borrowing figure. It measures the difference in the value of the spending and income of the public corporations as well as the central government of the UK […]read more