GBP/USD Daily Price Analysis – Sterling’s Next Move Hinges on Budget
Key U.S. data, including the ADP Employment Rep...around 1.30003, reflecting a slight […]
Published on: 30 Oct 2024
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HowToTrade.com provides our readers with a daily market analysis for the GBP/USD, including the latest news, GBP/USD price, updates, and price forecasts from our trading experts.
Also referred to as the ‘Cable, the GBP/USD is one of the four major currency pairs along with the EUR/USD, USD/JPY, and USD/CHF. The pair accounts for around 14% of the total daily turnover in the foreign exchange market, which makes it one of the most liquid assets in financial markets.
Trading the GBP/USD can be done in multiple ways. These include the spot FX market, futures contracts, options, and CFDs. The latest option, CFDs, is the preferred option among many investors and traders since it enables traders to get a high leverage ratio and low trading fees.
Follow these steps to start trading the GBP/USD:
The exchange rate between the British pound and the US Dollar is affected by various factors, including economic data, central bank policies, political conditions, and interest rate differentials between the two currencies. For instance, when a nation reports data that may indicate economic growth, its currency is likely to strengthen versus the other. At the same time, if there’s political turmoil or instability, a local currency is expected to weaken versus the other.
.GBP/USD is not easy to trade, per se, since you still need basic trading skills and knowledge of various trading strategies to make profitable trades. However, the British Pound vs the US Dollar is an excellent asset for beginners due to its high liquidity, low spreads, and wealth of information that can help you to easily predict future price movements.
The GBP/USD pair typically experiences more volatility during the London session and the overlap of the New York and London trading sessions, which occurs between 8 a.m. and 12 p.m. EST.
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