Instrument which price is based on quotations of British Pound to American Dollar on the interbank market.
The GBP/USD Forex pair, also known as the Cable , is a major currency pair and one of the most traded in the world.
It represents the exchange rate between the British Pound and the US Dollar and is affected by a variety of factors, including economic indicators, political events, and global events such as natural disasters and geopolitical tensions.
Investors can trade this pair, as well as other currencies, through any forex broker.
Forex trading involves speculating on the movement of exchange prices by buying one currency while simultaneously selling another. The forex market is the largest market in the world, with an average daily turnover in excess of $6 trillion. The value of the GBP/USD pair is affected by economic indicators such as inflation, interest rates, and GDP growth, as well as political events such as elections and trade negotiations. For instance, if the Bank of England raises interest rates, the demand for the Pound can increase, leading to an increase in the value of the GBP/USD pair.
Trading GBP/USD as a CFD allows traders to speculate on the price movements of the currency pair without owning the underlying assets. CFDs offer flexibility in trading, with the ability to go long or short on the currency pair.
XTB offers CFDs for the GBP/USD forex pair. Learn more here.
While investing in the GBP/USD forex pair can offer opportunities for traders to profit from exchange rate fluctuations, it is important to note that it can also be risky as currency prices are constantly changing and can be affected by unexpected events. Therefore, it is recommended that traders do their own research, develop a trading plan, and use risk management techniques such as stop-loss orders to minimise potential losses. The GBP/USD market is generally busy between 06:00 and 16:00 GMT.