The GBP/USD is the third most liquid currency pair, which accounts for a significant quantity of daily trading, and is especially popular amongst technical traders.
A number of reasons. The main of which are the high levels of liquidity in terms of trading volumes and number of players, and sensitivity to big long-term trends, means that the market constantly changes, develops different patterns, and so on.
Trading a major currency pair such as GBP/USD is especially appealing for technical traders who use trends and patterns on the chart as their signals, and can therefore benefit from the dynamic and ever changing environment of the Cable.
There are a number of various factors that have an effect on the pound/dollar currency pair. These include changes in: GDP, employment, interest rates, inflation rates, and political shifts within the domestic economy will affect the relevant currency respectively.
Monetary policy is another important factor that influences the GBP/USD. Communications from both central banks can be one of the biggest determinants of the currency pair value. The UK's Bank of England reviews the interest rate every month, whereas the US Federal Reserve reviews rates eight times a year.
A factor specific to the pound sterling at the moment is Brexit. Britain's relationship with the EU, whatever that may be, will be a huge influencing factor for the foreseeable decade.
Technical Forecast for GBP/USD
Technical GBP/USD forecast focuses on the technical analysis and key levels depending on the selected time-frame. Shift between time-frames to learn the technical analysis for GBP/USD in real time.
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