GBP/USD – Rate, Chart, Analysis & News

GBP/USD is a Forex ticker that represents the price it will cost you in US Dollars to buy 1 GBP. FX currencies are shortened to three-letter abbreviations for ease and are called ISO codes. The Forex market trades in these currency pairs and have a quote structure of Base/Quote (GBP/USD).

The live GBP/USD rate is shown below in an interactive chart that you can use for technical analysis. Our real-time news and analysis will keep you up to date with factors affecting the price movements of GBP/USD, both fundamental and technical.

GBP/USD Currency Chart


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GBP/USD Explained

The GBP/USD currency pair represents the British Pound against the U.S. Dollar. It is one of the top five most-widely traded currency pairs in the world. As the UK economy is the second largest after Germany in the Eurozone, the Pound accounts for 14% of daily global trading volume. 

There are several factors that influence the value of the British pound and/or the U.S. dollar in relation to each other and other currencies. Historically, GBP/USD which is also known as cable has been one of the least volatile currency pairings on the global Forex market. However this has changed in recent years – particularly due to the European debt crisis and the upcoming Brexit deal.

GBP/USD Significant Price Movements

In 2007, just before the recession, the GBP/USD pair reached an all-time high above 2.10. This was followed by a dip below 1.40, losing over a third of its value.  In the five or so years preceding the recession, the British pound recovered to trade around 1.6 against the U.S. dollar. 

In 2016, the GBP/USD had another sharp decline when Britain voted to leave the European Union. This resulted in a 10% fall of the GBP/USD currency pair in one trading session. Subsequently, it lost nearly 20% in the month preceding the Brexit vote. The negative sentiment surrounding Brexit is the cause of a great deal of economic uncertainty and investors pulling money out of the U.K. at a record pace.

GBP/USD Price Analysis

 

 

FAQ’s

Which is the best broker to trade the GBP/USD pair?

There are many online brokers that support day trading of the GBP/USD pair. We are constantly evaluating new and existing brokers to recommend the most reliable ones. For more information, you can go to our page that reviews and compares the best Forex brokers to learn more about the different platforms where you can trade GBP/USD.

When I trade the GBP/USD pair will I own the actual currency?

No. CFDs allow you to speculate on rises and falls in the currency pair without having physical ownership. With CFDs, you only have to put in a fraction of the market value of the underlying asset when making a trade. Unlike investing, when you trade CFDs, you are not buying or trading the underlying asset. What you are buying/selling is a contract between yourself and the CFD provider.  

How to trade the GBP/USD pair?

Trading the GBP/USD pair is connected to a lot of chaotic price movements, sharp and unexpected. The Pound has unreliable technical levels with a lot of false breaks occurring on the GBP/USD pair. Because of this, it is necessary to leave bigger margin of errors for entering a position on the pair. However, when looking at entering a position it should be placed below the technical levels because the GBP/USD pair usually overshoots the level before making a significant move. 

 


See other currency pairs live rates here.