{"id":8419,"date":"2021-05-20T17:47:02","date_gmt":"2021-05-20T14:47:02","guid":{"rendered":"https:\/\/roboforex.com/blog\/?p=8419"},"modified":"2026-05-26T10:57:17","modified_gmt":"2026-05-26T07:57:17","slug":"how-to-trade-the-gbp-usd-currency-pair","status":"publish","type":"post","link":"https:\/\/roboforex.com/blog\/blog\/2021\/05\/20\/how-to-trade-the-gbp-usd-currency-pair\/","title":{"rendered":"How to Trade the GBP\/USD Currency Pair?"},"content":{"rendered":"\n

GBP\/USD<\/a> (Great Britain pound vs US dollar)<\/strong> is a major currency pair<\/a>, which means it is one of the main and liquid Forex<\/a> assets alongside EUR\/USD<\/a>, USD\/CHF<\/a>, AUD\/USD<\/a>, USD\/JPY<\/a>, and others. There is evidence that it takes from 12% to 17% of the total market trade turnover.<\/p>\n\n\n\n

The base currency is the British pound and the quote one – the US dollar. This means that when the pair is growing, the pound is getting stronger while the USD is weakening.<\/p>\n\n\n\n

Many call the British pound one of the most aggressive currencies in the financial market, and this is what creates high volatility<\/a> in the pair. The behavior of these quotations is often unpredictable; they create a lot of false breakaways of support\/resistance levels<\/a> on the chart.<\/p>\n\n\n\n

In this article, we will speak in more detail about the history of the pair, describe the factors that influence its behavior, and suggest a simple trading strategy<\/a>.<\/p>\n\n\n\n\n\n

<\/span>Short history of GBP\/USD<\/span><\/h2>\n\n\n\n

The full name of the British national currency is the sterling pound<\/strong>. The history of the currency dates back to the year 775. As long as the relationship between Britain and its colonies was developing, the necessity to pay for goods and overseas transportation emerged.<\/p>\n\n\n\n

One version of where the name “sterling pound” comes from the method of coinage at those times. They used silver<\/a>, and 1 pound of silver produced 240 coins. They started being called “sterling”, and this term was officially accepted for the currency in 1694.<\/p>\n\n\n\n

As for the GBP\/USD<\/a> pair, its second non-official name – Cable – is derived from a real cable stretched along the bottom of the Atlantic Ocean for uninterrupted exchange of the pair’s quotations.<\/p>\n\n\n\n

Now let us switch from history to the meat.<\/p>\n\n\n\n

<\/span>What does influence the GBP\/USD quotations?<\/span><\/h2>\n\n\n\n

The main driver of GBP\/USD behavior is macroeconomic data<\/a> and indices<\/a> from Great Britain. However, there are two more factors:<\/p>\n\n\n\n