GBP/USD Analysis · GBP/USD
GBP/USD (Cable): Characteristics and Analysis Approach
1 min readEvergreen guide
Why GBP/USD is nicknamed Cable, what drives it and how to account for its volatility.
Background
GBP/USD is nicknamed "Cable" after the transatlantic telegraph cable once used to transmit exchange rates between London and New York.
Drivers
Bank of England policy, UK inflation and employment data, and US data all matter. The pair is often more volatile than EUR/USD, so stop-losses may need more room and position sizes should be adjusted down accordingly.
Key takeaway
Wider ranges require smaller size for the same money at risk.
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