empty
13.06.2022 01:26 PM
GBP/USD: Features and recommendations

This image is no longer relevant

GBP/USD refers to reverse currency pairs and indicates how many units of dollars (US national currency) you need to pay for one pound sterling (UK national currency). The base currency in the GBP/USD pair is the pound sterling. This means that the commodity in the GBP/USD pair is the pound, and the US dollar is the second currency in the pair, which buys the base currency (pound sterling). The pound, like the dollar, is included in the IMF basket, consisting of five major world reserve currencies (in descending order): the US dollar (about 41%), the euro, the yuan, the yen, and the pound sterling (about 8%). The GBP/USD pair belongs to the category of "major" currency pairs along with the USD/JPY, EUR/USD, AUD/USD, USD/CHF, USD/CAD, NZD/USD currency pairs.

At the moment (at the beginning of June 2022), the GBP/USD pair is trading on the forex market near the 1.2210 mark. This means that for one pound they give 1.2210 US dollars.

Features of trading the GBP/USD pair

1. According to various estimates, the GBP/USD pair accounts for approximately 10–15% of the total trading volume on the foreign exchange market. Both the dollar and the pound are highly liquid currencies. Almost at any moment there will be both buyers and sellers for the dollar or the pound. The UK and the US have the strongest economies in the world. The United States is in first place in the world in terms of GDP (approximately 25% of world GDP). The UK share is about 4%. At the same time, the UK GDP growth rate remains one of the highest in the world in annual terms (2–3%). Great Britain is one of the world's financial centers, carrying out 10% of the world's exports of services (banking, insurance, brokerage, advisory, software).

2. The GBP/USD pair is actively traded throughout the trading day. The largest peak of trading activity with the pound and the GBP/USD pair and the largest trading volumes occur during the European session, when the London Stock Exchange opens (07:00 – 16:00 GMT), and the American session (12:00 – 21:00 GMT). Moreover, the time between the beginning of the session in New York (12:00) and the end of the trading session in London (16:00) will be the most active, since the two trading sessions overlap at this time, and European and US traders participate in trading.

3. A surge in trading volatility in the GBP/USD pair occurs during the publication of important macroeconomic indicators for the US and the UK. The following macroeconomic factors and indicators give the greatest volatility to the GBP/USD pair:

  • Decisions by the Fed and the Bank of England regarding monetary policy in the US or the UK,
  • Speeches by the heads of the Fed and the Bank of England (currently Jerome Powell and Andrew Bailey, respectively),
  • Publication of minutes from the latest meetings of the Fed and the Bank of England on monetary policy issues
  • Data from the labor market of the USA, Great Britain,
  • Data on the GDP of the USA, Great Britain,
  • Publication of inflationary indicators of the USA, Great Britain.

Strong macroeconomic indicators in the US or the UK lead to the strengthening of the dollar or the pound, respectively, as they contribute to the growth of "tough sentiment" of the central banks of the United States or Great Britain regarding the increase in the interest rate. And this is a positive factor for the national currency, which leads to an increase in its value.

4. Important political events in the USA, Great Britain, the Eurozone, and the world also affect the quotes of currencies, and above all, the dollar, euro, and pound. The UK's largest trade and economic partners remain the United States and the European Union, from which the UK left, according to the referendum held in the UK in the summer of 2016, known as Brexit. After the referendum, the pound "fell better" in the foreign exchange market by more than 20%. At the same time, the index of the London Stock Exchange FTSE100 rose by 15%. And the Bank of England lowered the interest rate in August 2016 to the level of 0.25%, and to the level of 0.1% in March 2020, but already due to the support of the British economy due to the detrimental impact of the coronavirus pandemic, which is the lowest value in last 300 years. However, at the moment, the Fed and the Bank of England began a cycle of tightening their monetary policies. The most important among other reasons is the accelerated inflation in the US and the UK, which has reached its highest levels in several decades. Under normal economic conditions, an increase in the interest rate leads, as a rule, to the strengthening of the national currency.

5. The sale of assets in the stock markets of the US or the UK leads, as a rule, to an increase in the value of the dollar or pound, respectively. The sale of US or UK government bonds is accompanied by an increase in their yield and the value of the dollar or pound, respectively, and vice versa. The growth of the stock market in the US or the UK, as a rule, is accompanied by a decrease in the value of the dollar or pound.6. In relation to other "major" currency pairs, the GBP/USD pair moves quite independently. Only with pairs EUR/USD, NZD/USD there is approximately 50% correlation.

7. The GBP/USD pair is considered one of the most volatile in the foreign exchange market. The intraday volatility of the GBP/USD pair fluctuates in different periods of the year. On average, it is 100–150 points (in a 4-digit quote), but can exceed 300 points during periods of important news of a political or economic nature.

8. The GBP/USD pair also has a sufficient degree of inertia. In the event of a breakdown of the level, the pair actively moves towards the breakdown for quite a long time. At the same time, GBP/USD is one of the most popular pairs in trading and is suitable for both medium and long-term strategies, such as level breakouts, and short-term intraday trading strategies.

Jurij Tolin,
Analytical expert of InstaForex
© 2007-2025
选择时间框架
5
分钟
15
分钟
30
分钟
1
小时
4
小时
1
1
通过InstaForex赚取加密货币汇率变动的收益。
下载MetaTrader 4并开启您的第一笔交易。
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

推荐文章

EUR/USD. 挑戰極限:買家瞄準1.1630阻力位

連續第二天,歐元/美元貨幣對測試1.16水平,壓力在1.1630的阻力位(D1時間框架的布林通道指標的上軌)。地緣政治發展和昨日在美國國會眾議院發表演講的傑羅姆·鮑威爾的評論對歐元/美元多頭有利。

Irina Manzenko 19:03 2025-06-25 UTC+2

日元重回競技場

日圓在身為避險貨幣的考驗中失敗了。以色列與伊朗之間的衝突引發了美元兌日圓(USD/JPY)恢復下行趨勢的修正。

Marek Petkovich 18:55 2025-06-25 UTC+2

美元/日元:避險資產需求下降,日元走弱

目前,日圓仍受到美元的壓制。從日本央行的國內政策角度來看,6月會議摘要顯示,由於美國貿易關稅戰對日本經濟影響的不確定性,一些決策者傾向於維持當前的利率。

Irina Yanina 18:46 2025-06-25 UTC+2

伊朗與以色列的停火:市場接下來會如何發展?(歐元/美元和英鎊/美元可能出現調整性下跌)

中東地緣政治緊張局勢持續對金融市場產生重大影響。令人關注的是德黑蘭與特拉維夫之間停火的穩定性,這項發展由美國總統早前隆重宣佈。

Pati Gani 09:43 2025-06-25 UTC+2

市場已克服障礙

無論是中國DeepSeek的故事、白宮的關稅政策,還是以色列與伊朗的衝突,都無法阻擋美國股票指數的勝利進程。隨著市場對人工智慧技術的興趣重新高漲,納斯達克100指數已更新了其歷史高點。

Marek Petkovich 08:44 2025-06-25 UTC+2

6月25日需要注意什麼?初學者的基本事件分解

週三沒有預定的宏觀經濟報告。過去兩天,我們見證了歐元和英鎊因美元新一輪下跌而出現顯著反彈。

Paolo Greco 06:36 2025-06-25 UTC+2

GBP/USD 概述 – 6月25日:特朗普再次对美聯儲和鮑威爾施壓

在星期二,英鎊/美元貨幣對繼續其上升趨勢。如果您想了解美國美元最近下跌原因的一小部分,我們建議閱讀歐元/美元相關文章。

Paolo Greco 03:35 2025-06-25 UTC+2

歐元/美元概覽 – 6月25日:為什麼美元再次下跌?

歐元/美元貨幣對在週二繼續其自週一開始的上漲趨勢。我們回顧一下,週一大家預期的一開始就會有一場“雲霄飛車”般的波動,即在夜間市場開盤時。

Paolo Greco 03:35 2025-06-25 UTC+2

戰爭結束了嗎?

週二早上,唐納德·特朗普宣佈伊朗和以色列之間的戰爭結束。值得注意的是,儘管上週六他親自下令對伊朗三個核設施進行打擊,但他在這場衝突或停火中並未提到美國。

Chin Zhao 00:42 2025-06-25 UTC+2

AUD/USD:澳幣重返市場

隨著地緣政治緊張局勢緩解及風險資產再度受到關注,澳幣兌美元匯率回升至0.65範圍。中東宣佈的停火協議「岌岌可危」,但從澳幣兌美元的上升趨勢來看,市場似乎對各方能遵循已達成的條款抱有信心。

Irina Manzenko 00:22 2025-06-25 UTC+2
现在无法通话?
提出您的问题,用 在线帮助.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.