The GBP/USD, British pound and the United States dollar, is the biggest and most frequently traded currency pair in the forex market worldwide. This currency pair portrays how many United States dollars can be used to buy one British Pound. In this case, the USD is the quote currency, while the GBP is the base currency. Trading the GBP/USD is mostly known as trading the cable.
The monetary value of the GBP/USD currency pair is quoted as one British pound for an x United States dollar. For instance, if the price of trading the GBP/USD currency pair is 1.60, it simply means that it takes 1.6 Unite States dollar to buy one British pond. This currency pair is mostly influenced by indices that affect the value of the British pound and the United States dollar when compared to other currencies around the globe e.g. the bank of England and the federal reverse. There is always a decline in the GBP/USD when the federal reverse interpose in the open market activates to make the United States dollar stronger which in turn weakens the British pound.
A negative correlation is usually seen between the GBP/USD currency pair and the USD/CHF currency pair while there is a positive correlation between the GBP/USD currency pair and the EUR/USD currency pair.
NEWS ON FOREX GBP/USD ANALYSIS
GBP/USD CURRENCY PAIR CONTINUES TO UNIFY
Another decline was seen in the GBP/USD currency yesterday which was primarily due to the weak essential data from the United Kingdom. However, the decline of this currency pair helps to elongate its trend which has been seen 4 weeks ago. It is still unknown if the 1.29 or the 1.2760 level is the lower boundary of the currency pair trend but the 1.31 mark is still represented by the upper boundary for now.
As a result of these trends, trading the GBP/USD currency pair will still undergo another decline regardless of being in advocate by the weekly s1 and the twenty days SMA demand cluster which was seen in the opening price of today. Technical indicators are still on the fact that a positive development is due which is only possible if United States inflation data dissatisfies.
ECONOMIC RELATIONSHIP BETWEEN THE UNITED KINGDOM AND THE UNITED STATES
Trade wise, the United States is seen as the United Kingdom’s largest export and second largest import partner after Germany. When comparing the United Kingdom’s exports to the United States, total exports are being accounted by a similar proportion and goods and services where service accounts for a light greater coherence by 52.7 percent of exports in the year 2015. This means that the United Kingdom has imported a greater number of goods when compared to the services rendered by the United States.
In conclusion, the GBP/USD currency pair is highly liquid in the forex market. It has Bid-ask spreads and arbitrage opportunities. This liquidity feature in collaboration with trading instrument availability makes the GBP/USD currency pair a great choice for all forex currency traders.
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