GBP/USD overview
Sterling-dollar — nicknamed “Cable” after the 19th-century transatlantic telegraph cable used to transmit quotes — is the third most traded FX pair. It is consistently more volatile than EUR/USD, with average daily ranges around 80–110 pips.
What moves GBP/USD
- BoE vs. Fed policy divergence — the dominant rate-differential driver.
- UK CPI, GDP, employment — released mid-month, often produce 50–150 pip moves.
- Risk sentiment — sterling behaves as a “risk currency”; sells off in equity drawdowns.
- Political headlines — UK fiscal events and trade news can move the pair sharply intraday.
Typical spread
Cable trades at 0.2–0.8 pips raw on ECN brokers, 1.0–2.0 pips on standard accounts. Slightly wider than EUR/USD but still tight enough for scalping with the right broker.