Forex Major
GBP/USD — British Pound / US Dollar
0.3 – 1.5 pips · 80 – 150 pips
GBP/USD ("Cable") is more volatile than EUR/USD and reacts sharply to UK politics and Bank of England guidance. It offers wider ranges for breakout traders but punishes tight stops.
Risk first
Numbers below are typical ranges, not guarantees — spreads, swaps and volatility differ per broker and market regime. Size every position from your stop distance and account risk, never from a fixed lot habit.
Contract specifications
| Spec | Value |
|---|---|
| Contract size | 1.00 lot = 100,000 GBP |
| Pip / tick value | 0.0001 → ca. 10 USD / 1.00 lot |
| Typical spread | 0.3 – 1.5 pips |
| Typical daily range | 80 – 150 pips |
| Best trading hours | London session, especially 07:00–11:00 UTC |
What moves this market
- ▸Bank of England decisions and UK inflation prints
- ▸UK fiscal news and gilt yields
- ▸Broad USD direction via US data
Correlations to watch
- ▸High positive correlation with EUR/USD (often 0.8+)
- ▸GBP/JPY amplifies the same GBP move — treat as one risk
How traders approach it
- ▸London breakout with ATR-based stops
- ▸Structure trading on H1 after the 08:00 UTC impulse
- ▸Fade extended moves only at daily levels
Typical mistakes
- ▸Using EUR/USD stop distances on a pair that moves 40% more
- ▸Ignoring UK political headlines that gap the pair
Related instruments
Analyse it in FX CURIO
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