somrat4030
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Forex Forum is a place where traders can get their needful information and resources.
The British pound is older than the USD. It has been in the foreign exchange markets since its introduction more than 1,200 years ago. On the other hand, the USD has been the United States’ standard monetary measure for over 200 years.
“The USD is the world’s most traded currency and primary reserve currency”, says the Balance.
The GBP/ USD currency pairing, which has an incredible historical exchange rate, represents a pairing that has been one of the best reserve currencies worldwide for many years. Britain colonised the US, which made the pound dominate the financial market before World War 1 in 1914.
Factors that affect GBP/USD
If you are familiar with forex pairs and changes in exchange rates, you’ll know that there are a number of different factors that affect the price of a currency. Understanding and staying abreast of current developments will allow you to better predict in which direction said currency might move. When you wish to trade GBP/USD, it’s paramount that you stay informed with internal issues and changes to various economic policies. Below the list of factors that affects GBP/USD currency pairs:
1. Interest rates
Current economic theory will tell you that there is a high correlation between interest rates and exchange rates.
2. Political changes
Political instability in a country will have a major effect on investor confidence.
3. Sustained economic growth
GDP is a major indicator of economic health within a country. As such, many traders keep an eye out for data reports on the latest GDP numbers.
4. Low inflation
There is an inverse relationship between inflation and exchange rates.
GBP/USD trading hours
Theoretically you can trade forex pairs 24/7, but there are prime times to trade the GBP/USD when the currency pair is more volatile. The GBP/USD is generally busy between 06:00 and 16:00 (GMT).
Effective Field-Tested Strategies For the GBP/USD.
1. Trading the Breakouts
Breakouts Trading is a very popular strategy in the Forex sphere. The basic recipe of this strategy is: when pre-defined support or resistance thresholds are broken with volume increased significantly, you should jump into the market towards the breakoutג€™s direction.
2. Trading News
The news trading strategy is also effective for GBP/USD traders. As a new trader, you need to track all high-impact economic announcements of the US and the UK. You should use online economic calendars to do so. Besides, itג€™s a good idea to track live FX news updates on sites like Google Finance or Bloomberg.
On the other hand, GBP USD traders need to keep a close eye on both the US and UK unemployment rate figures. As with extreme volatility increases often seen following the BOE or FED rate decision, the employment data can also be a highly impactful economic report. Essentially the unemployment rate measures the percentage of the aggregate workforce that is out of work but currently seeking employment.
Obviously the higher the unemployment rate, the more detrimental it is for the economy as a whole.
FUNDAMENTALS THAT MOVE THE GBP/USD
There are several fundamental factors that are important to look at when you are day trading the GBP/USD pair. Some of these are:
1. Federal Reserve – The GBP/USD tends to move when the Fed makes its decision or when its members talk.
2. Bank of England – The pair moves when the BOE makes its decision or when its leaders talk.
3. Inflation – The UK and US inflation numbers move the GBP/USD pair because inflation has an impact on interest rates.
4. Employment data – The UK and US employment numbers have an impact on the GBP/USD because they influence interest rates.
The Best Way to Profit from GBP/USD
Risk management is crucial in ensuring one makes money in forex while on the right track than when on the wrong one. This way, it’s easy to identify when to decrease risk, take much more risks and when to exit trades. At any particular moment, investors should know when to initiate trades and the direction the price of the currency in exchange will move. Failure to have a way to exit a trade makes it hard to realise a good return on investment.
#forexforum #forextraders #currencytraders #forumforex #forextrading
The British pound is older than the USD. It has been in the foreign exchange markets since its introduction more than 1,200 years ago. On the other hand, the USD has been the United States’ standard monetary measure for over 200 years.
“The USD is the world’s most traded currency and primary reserve currency”, says the Balance.
The GBP/ USD currency pairing, which has an incredible historical exchange rate, represents a pairing that has been one of the best reserve currencies worldwide for many years. Britain colonised the US, which made the pound dominate the financial market before World War 1 in 1914.
Factors that affect GBP/USD
If you are familiar with forex pairs and changes in exchange rates, you’ll know that there are a number of different factors that affect the price of a currency. Understanding and staying abreast of current developments will allow you to better predict in which direction said currency might move. When you wish to trade GBP/USD, it’s paramount that you stay informed with internal issues and changes to various economic policies. Below the list of factors that affects GBP/USD currency pairs:
1. Interest rates
Current economic theory will tell you that there is a high correlation between interest rates and exchange rates.
2. Political changes
Political instability in a country will have a major effect on investor confidence.
3. Sustained economic growth
GDP is a major indicator of economic health within a country. As such, many traders keep an eye out for data reports on the latest GDP numbers.
4. Low inflation
There is an inverse relationship between inflation and exchange rates.
GBP/USD trading hours
Theoretically you can trade forex pairs 24/7, but there are prime times to trade the GBP/USD when the currency pair is more volatile. The GBP/USD is generally busy between 06:00 and 16:00 (GMT).
Effective Field-Tested Strategies For the GBP/USD.
1. Trading the Breakouts
Breakouts Trading is a very popular strategy in the Forex sphere. The basic recipe of this strategy is: when pre-defined support or resistance thresholds are broken with volume increased significantly, you should jump into the market towards the breakoutג€™s direction.
2. Trading News
The news trading strategy is also effective for GBP/USD traders. As a new trader, you need to track all high-impact economic announcements of the US and the UK. You should use online economic calendars to do so. Besides, itג€™s a good idea to track live FX news updates on sites like Google Finance or Bloomberg.
On the other hand, GBP USD traders need to keep a close eye on both the US and UK unemployment rate figures. As with extreme volatility increases often seen following the BOE or FED rate decision, the employment data can also be a highly impactful economic report. Essentially the unemployment rate measures the percentage of the aggregate workforce that is out of work but currently seeking employment.
Obviously the higher the unemployment rate, the more detrimental it is for the economy as a whole.
FUNDAMENTALS THAT MOVE THE GBP/USD
There are several fundamental factors that are important to look at when you are day trading the GBP/USD pair. Some of these are:
1. Federal Reserve – The GBP/USD tends to move when the Fed makes its decision or when its members talk.
2. Bank of England – The pair moves when the BOE makes its decision or when its leaders talk.
3. Inflation – The UK and US inflation numbers move the GBP/USD pair because inflation has an impact on interest rates.
4. Employment data – The UK and US employment numbers have an impact on the GBP/USD because they influence interest rates.
The Best Way to Profit from GBP/USD
Risk management is crucial in ensuring one makes money in forex while on the right track than when on the wrong one. This way, it’s easy to identify when to decrease risk, take much more risks and when to exit trades. At any particular moment, investors should know when to initiate trades and the direction the price of the currency in exchange will move. Failure to have a way to exit a trade makes it hard to realise a good return on investment.
#forexforum #forextraders #currencytraders #forumforex #forextrading
