GBP/USD, nicknamed 'Cable' (from the transatlantic telegraph cable that transmitted exchange rates), is the third most traded currency pair. It represents the British pound versus the US dollar. The pound is one of the oldest currencies still in use, and the pair reflects the relative economic health of the UK versus the US.
GBP/USD is driven by Bank of England rate decisions, UK inflation and employment data, Brexit-related trade developments, UK political stability, US dollar strength, and relative GDP growth. UK gilt yields and housing market data are secondary drivers. Scottish independence sentiment and Northern Ireland trade arrangements can create political risk premiums.
Cable is more volatile than EUR/USD with wider daily ranges. It tends to gap on UK political developments and BoE surprises. The London session open (07:00-08:00 UTC) often sets the daily direction. Strong seasonal weakness in late summer and strength around year-end are historical patterns.
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Common questions about British Pound / US Dollar (GBPUSD=X)