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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 has faced significant pressure over the past six weeks, dropping 5.5% to 1.25920 since early October, marking its lowest level since May 15. The pair has now reached a strong trend support zone at 1.25000-1.26000 and is showing signs of recovery.
Oversold conditions are substantial, positioning the pair for a potential rebound. On November 18, GBPUSD gained 0.6% to 1.26800, marking its strongest single-day rise in two weeks and signaling the possibility of a reversal.
Upside targets appear promising, with the potential for GBPUSD to rise toward the middle of the ascending channel at 1.32000-1.32500. Considering the current conditions, opening a long position remains timely. However, given the Cable’s well-known volatility, I plan to enter a long trade at 1.26500-1.27500, setting a stop-loss at 1.24200 to manage risks effectively.
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 |
|---|
