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- GBPUSD - Great Britain Pound to US Dollar
GBPUSD GBP/USD
Great Britain Pound to US Dollar
Great Britain Pound to US Dollar
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The GBPUSD was extremely overbought in early October when it traded at 1.34000. Now, the situation has reversed. The pair is significantly oversold after reaching 1.30060 on 10 October. This shift was triggered by Bank of England Governor Andrew Bailey, who signalled a more aggressive stance on interest rate cuts. However, the latest unemployment data, which edged lower to 4.0% from 4.1%, has effectively negated his dovish tone.
From a technical perspective, the Pound has fallen too far, having crossed below a trend support level. There seems to be nothing strong enough to break the uptrend until the US presidential election on 5 November. The BoE is also scheduled to hold its meeting on 7 November.
This presents an attractive upside opportunity for the Cable. I am planning to open long positions at 1.30200-1.30700, targeting 1.32500-1.33000, which suggests the price may continue to follow the trend support. A stop-loss can be set at 1.28300.
Great Britain Pound to US Dollar
- Brokers usually offer best conditions for traders to trade GBP/USD with minor spreads and fees. The pair sometimes has positive swaps that can be used to get some more profit;
- Trading is accompanied by huge liquidity. Thus, the pair is very “technical,” meaning that technical analysis could be exercised with high accuracy. Thus, it is very popular among individual traders;
- Moving factors behind the USD are stronger and play a decisive role in the pair’s movements. Thus, dollar-related drivers should be monitored very carefully, including the actions of the U.S. Federal Reserve;
- Macroeconomic data in the United Kingdom, like Gross Domestic Product (GDP), inflation, the Purchasing Manager’s Index (PMI), unemployment, and the actions of the Bank of England, move the pair from the Pound’s side;
- The Pound is not a commodity-driven currency, neither is it a safe haven asset. Thus, changes in risk appetite have minor effects on the pair from the Pound’s side; - The Cable is heavily linked to the Euro as the British economy has vast exposure to Europe. Financial services in the U.K. are also bound to Europe. However, neither currency plays a leading role here. Any currency can take this role depending on the market situation;
- European and American hours are the most favorable to trade the Cable, or cross rates with the Pound. Trading on the Pound drops during night hours and is subject to minor volatility.
| Ticker | GBPUSD GBP/USD |
| Contract value | 100000 GBP |
| Maximum leverage | 1:500 |
| Date | Short Swap (pips) | Long Swap (pips) | No data |
|---|
| Minimum transaction volume | 0.01 lot |
| Maximum transaction volume | 70 lots |
| Hedging margin | 50% |
| USD Exposure | Max Leverage Applied | Floating Margin |
|---|
