GBP/USD(Cable)

What is GBP/USD?

GBP/USD pairs the British Pound against the United States Dollar. It is one of the oldest actively-traded currency pairs in the world. The nickname "Cable" dates to the late 1800s when GBP/USD quotes were transmitted across the trans-Atlantic telegraph cable between London and New York dealers.

Cable is more volatile than EUR/USD. Daily ranges of 80 to 120 pips are routine, and the pair frequently produces clean directional moves around UK economic releases and Bank of England decisions.

Base currency

GBP (British Pound, United Kingdom)

Quote currency

USD (US Dollar, United States)

Pip location

4th decimal (0.0001)

Volume share

about 9% of daily global forex turnover, the third-most-traded major

When to trade GBP/USD

The London session is where GBP/USD lives. The pair opens its highest-volume window when London starts trading at 3 AM ET, then accelerates through the London-NY overlap from 8 to 11 AM ET. That four-hour window typically captures 60 to 80% of the daily range.

Avoid scalping Cable during the late-Asian / pre-London window (roughly 4 to 7 AM ET): spreads are still wide and order flow is thin, producing choppy, hard-to-trade structure.

Best session

London / NY overlap (8 to 11 AM ET)

Avoid

Late Asian session (4 to 7 AM ET, choppy)

News events that move GBP/USD

Bank of England rate decisions (eight times per year) are the highest-impact GBP events. A surprise hike or cut can move Cable 100 to 200 pips in minutes. UK CPI (monthly) and UK GDP (quarterly) routinely produce 40 to 80 pip moves.

On the USD side, FOMC and NFP drive Cable about as much as they drive EUR/USD. Watch for divergent central-bank tones: if the BoE turns hawkish while the Fed signals cuts, GBP/USD tends to rally hard.

Central banks

Bank of England (BoE), Federal Reserve (Fed)

Key releases

BoE rate decisions, UK CPI, UK GDP, FOMC, NFP

Want the full event calendar? See the economic calendar, and look up unfamiliar terms in the forex glossary.

GBP/USD FAQ