The pound sterling is the national currency of Great Britain; it is also used on the territory of several former colonies that used to be part of the British empire. In terms of value, this currency is the most expensive in the world today; its rate has been stable for many years. The British pound to the US dollar (GBP/USD) is one of the most popular traded currencies in the Forex market. The currency pair of the pound to USD occupies 9% of the total daily trading volume, making this currency pair among the most popular in financial markets.
GBP/USD has a wide price range compared to other currency pairs.
The high liquidity of the USD to pound currency pair allows traders to profit from price fluctuations 24 hours a day, five days a week.
In the medium term, it is often traded in flat, but strong trends and pullbacks usually characterize intraday trading.
Although the GBP/USD pair has high volatility, it is considered to be a reliable currency pair due to long-term market trends and patterns.
A trading instrument has a strong direct correlation with EUR/USD; in short-term time frames, you can easily see that the charts of both pairs move almost synchronously.
The British pound to USD currency pair is considered to be one of the most aggressive pairs in the Forex market. The pound, being quite heavy, provides cross-rates with its participation, in particular, the GBP/USD pair, with high volatility. Its behavior is somewhat unpredictable and is characterized by false breakdowns of support and resistance levels. The volatility of the pound to dollar pair may reach up to 130 points during one trading session. As a rule, London trading sessions are particularly dynamic and active. The lowest liquidity for this pair is observed in the Asian session. Therefore, beginners are better suited to trade during this particular time period.