Trading the Cable – GBPUSD

Trading the Cable Halal explained by professional Forex trading experts the “Trading the Cable” FX trading team.

Trading the Cable?

One of the oldest and most popular currency pairings in the world is the British Pound v/s the United States Dollar.

Speaking directly to this quality, the name ‘The Cable’ comes from the first transatlantic cable that was laid across the floor of the Ocean for the United States and Great Britain to communicate with one another.

One of the primary pieces of information exchanged on this first transatlantic cable were currency quotes on the two currencies.

A lot has changed since that first Trans-Atlantic cable was placed on the floor of the Ocean, but the GBPUSD currency pair continues to remain a favorite to traders around the world.

This article will take a closer look at this pair, and how traders may want to build their approach in trading ‘The Cable.’ At the end of the article, we’ll also enclose 2 strategies for trading in GBPUSD.

Characteristics of the GBPUSD

The reasons for GBPUSD’s popularity are abundant. The United Kingdom and the United States represent two of the oldest, modern economies in the world. Both economies feature a relative amount of safety, due in large part to the sheer size that each represents to the overall global economy. Below is a listing of the world’s 10 largest Independent economies (using 2011 IMF Statistics, in Millions of US Dollars):
Perhaps a larger contributing factor to interest in the GBPUSD currency pair is the fact that London is often considered to be the ‘center’ of the Forex trading world.

Estimates approximate that 35% of volume traded in the FX Markets takes place through London. This is the period just before the United States opens for business, leading to some of the most liquid trading times of the day.

As we saw in the article ‘Here is How to Trade Majors like the Euro During Active Hours,’ these market periods can potentially see larger moves as major players in-and-around London enter the market as the UK opens for business.

This can greatly affect the traders approach during the ‘London Session,’ and more specifically in trading the GBPUSD currency pair.

Trading the Cable Conclusion

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