Great Britain Pound vs US Dollar
GBP USD ranks as the third trading asset by the volume of market liquidity - the volume of operations with it holds 13% of the market. It is characterized by high and unstable volatility, the dependence on the dynamics of US dollar is average.
Pound is traditionally considered as a stable and safe asset due to independent financial policy of Great Britain in EU. It correlates with euro if it has common fundamental background. In case of tough money management, it gives professional and aggressive traders an opportunity to earn. Abundance of current and diverse information allows to conduct multiple-factor analysis of the asset.
The following factors have fundamental influence on the British pound US Dollar rate forecasts: the main economic indicators of Great Britain, Eurozone, and the USA (discount rate, GDP, inflation, unemployment level, CPI, PMI, etc.); Statements made by officials and financial structures of those countries, European and American financial regulators; Statements and monetary policy of ECB and the Bank of England; European stock market indexes FTSE 100, DAX, CAC 40.
Despite its aggressiveness, the forex GBP USD pair is considered as a highly technical asset, although trading strategies for penetration of power levels are dangerous due to a variety of false signals. Pound works off all economic news and force majeure situations speculatively. British pound US Dollar Forex trading is not recommended for beginners.
The British pound US dollar pair stays highly liquid practically for the whole trading day and goes down only during the Asian session. The active presence of British business interests in Asia has developed historically, therefore, when official statistics is published price jumps regarding Asian assets are possible. Main volume: exchange and speculative operations by ECB and the Bank of England, commodity and short-term option contracts, short-term hedging operations.