The British Pound or GBP/USD

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Trading in cable presents its own set of challenges, because the pair is prone to sharp price movements and seemingly chaotic price Acton.  But it`s exactly this type of price behavior that keeps the speculators like us at Currency Traders Club coming back-when we`re right, we`ll know very quickly, and the short-term results can be significant.

We`ve come to the conclusion that cable is similar to the EUR/USD in that it trades inversely to the overall USD.  But while EUR/USD frequently gets bogged down in tremendous two-way liquidity, cable exhibits much more abrupt volatility and more extreme overall price movements.  If U.S. economic news disappoints, for instance both sterling and EUR/USD will move higher. But if EUR/USD sees a 60 pip rally on the day, cable may see 100+point rally!  Which is personally why we love trading this major pair at Currency Traders Club

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