GBP/USD: British pound / US dollar

GBP/USD is the price of one British pound in US dollars. At 1.3000, one pound buys 1.30 dollars; when the pair rises, sterling is strengthening against the dollar, and when it falls, the dollar is gaining. It is one of the oldest and most heavily traded currency pairs and, for UK-based traders, the one that touches daily life most directly.

Its nickname, "Cable", comes from the transatlantic telegraph cable laid in the 1860s, which carried sterling–dollar prices between London and New York. Traders still use the name every day. This profile covers what moves the pair, how it behaves, what it costs to trade and what a beginner needs to watch.

What GBP/USD is and who trades it

In the BIS Triennial Central Bank Survey of April 2025, GBP/USD accounted for about 7.5% of global FX turnover, roughly 0.7 trillion dollars a day. That made it the fourth most traded pair, behind EUR/USD, USD/JPY and USD/CNY. Sterling as a currency was the fourth most traded overall.

London is also the largest FX trading centre in the world, so a great deal of global dealing, in every pair, happens during UK hours. The pair's participants include:

• Banks and dealers, many of them headquartered or with major desks in London.
• Asset managers and pension funds buying gilts, UK shares and US assets, and hedging their exposure.
• Companies trading across the Atlantic, from exporters to multinationals repatriating profits.
• Hedge funds, for whom sterling is a frequent vehicle for views on UK inflation, rates and politics.
• Retail traders, for whom Cable's daily ranges are a big part of its appeal, and a big part of its risk.

See how the forex market works for the broader picture.

The two economies and central banks behind it

The United Kingdom and the Bank of England

The Bank of England sets UK interest rates through its nine-member Monetary Policy Committee (MPC). It has had operational independence since 1997 and an inflation target of 2%, set by the government. The MPC meets eight times a year and publishes its decision at 12:00 UK time, along with the minutes and the vote split. Four times a year it also publishes the Monetary Policy Report with updated forecasts.

The vote split matters. A decision to hold rates with, say, three members voting for a cut reads very differently from a unanimous hold, and sterling often reacts more to the split than to the decision itself.

The UK publishes its key data at 07:00 UK time, before London trading is fully under way. The monthly CPI release and the labour market report (wages, employment and unemployment) are the most market-moving, followed by GDP and retail sales.

The United States and the Federal Reserve

The dollar side is driven by the Federal Reserve, which meets eight times a year and releases its decisions at 19:00 UK time for most of the year, and by US data such as non-farm payrolls and CPI at 13:30 UK time. On many days the bigger part of a GBP/USD move is a dollar move. Our guide to central banks and interest rates explains how the two sides interact.

What typically moves GBP/USD

Rate expectations on both sides. As with any major, the gap between expected UK and US rates is the slow-moving backbone of the pair. When markets push back the expected timing of BoE cuts relative to the Fed's, sterling tends to gain, and the reverse. The glossary entry on hawkish and dovish language helps decode central-bank statements.

UK inflation surprises. The UK has at times had stickier inflation than its peers, which has made CPI day especially important for sterling. A figure well away from consensus can move the pair sharply at 07:00. See how economic data moves forex.

Politics and fiscal credibility. Sterling is more exposed to domestic politics than the dollar or the euro. The 2016 EU referendum and the September 2022 mini-budget are the clearest recent examples, but elections and budgets regularly feature.

Risk sentiment. In broad global sell-offs, sterling has generally weakened against the dollar. The UK's reliance on foreign capital to finance its current-account deficit is often cited as a reason.

For the bigger picture, read what moves currency prices.

Character and behaviour by session

Times are UK time. The market hours tool converts them to your own time zone.

• Asian session (about 00:00–07:00): generally quiet, with narrower ranges and sometimes wider spreads. The October 2016 flash crash, described below, happened in this thin window.
• London open (07:00–09:00): UK data at 07:00 and the arrival of London dealers often bring the first big move of the day.
• Midday (around 12:00): Bank of England decisions on MPC days.
• London/New York overlap (about 13:00–17:00): typically the busiest period, with US data at 13:30 (12:30 during the weeks in March and late October to early November when UK and US clocks are out of step).
• After 17:00: activity fades into the New York afternoon and the 22:00 rollover.

Daylight saving moves the US releases and Fed decisions by an hour in UK time for a few weeks each year; forex market hours and sessions explains the shifts.

Compared with EUR/USD, GBP/USD has generally shown wider daily ranges and sharper reactions to news. Traders who like movement are drawn to that, but it means a stop-loss needs more room, and a position sized for EUR/USD can carry noticeably more risk on Cable.

Costs of trading GBP/USD

GBP/USD is a top-tier pair and spreads are usually tight in busy hours, though often a little wider than on EUR/USD at the same broker. Spreads widen around UK and US data, BoE and Fed decisions, the daily rollover, the Sunday open and around UK bank holidays. Why spreads widen covers how to check typical spreads rather than advertised minimums.

Swaps are set mainly by the difference between UK and US interest rates, minus the broker's mark-up. Whichever currency has the higher rate, holding it overnight against the other tends to earn the better (or less negative) swap. Because the gap between UK and US rates has often been narrow, mark-ups can mean both directions pay a small charge. Check the platform's figures and see swap and overnight financing.

UK-resident traders should also note the base-currency question: a GBP account trading GBP/USD earns profits in dollars that are converted back to pounds. See currency conversion and account base currency.

Pip value: a worked example

A pip on GBP/USD is 0.0001. With the dollar as quote currency:

• 1 standard lot (100,000 pounds): 10 dollars per pip
• 1 mini lot (10,000 pounds): 1 dollar per pip
• 1 micro lot (1,000 pounds): 0.10 dollars per pip

Example (illustrative numbers). Your account is in pounds and you want to risk no more than 100 pounds on a GBP/USD trade with a 50-pip stop. At a rate of 1.2500, 100 pounds is 125 dollars. Divide 125 dollars by 50 pips and you get 2.50 dollars per pip, which is 0.25 lots (25,000 pounds).

The margin for that position at 30:1 is about 3.33% of 25,000 pounds, roughly 833 pounds. If you had sized the same trade for a 20-pip stop on EUR/USD out of habit, you might have opened twice the size and doubled your risk. The pip value calculator and position size calculator take care of the arithmetic; position sizing explains the method.

Correlations with other pairs

• EUR/USD often moves in the same direction because both are priced in dollars. See the EUR/USD profile.
• EUR/GBP captures the difference between the two European currencies. If GBP/USD rises while EUR/USD is flat, EUR/GBP falls. See EUR/GBP.
• GBP/JPY combines sterling with the yen and is usually far more volatile. See GBP/JPY.
• USD/CHF has tended to move inversely to GBP/USD when the dollar drives both.

Correlations shift over time; a UK-specific shock can break the usual link with EUR/USD in a matter of minutes. The guide to currency correlation explains how to avoid stacking the same bet twice.

Notable history

• Black Wednesday, 16 September 1992. The UK left the European Exchange Rate Mechanism after failing to hold sterling within its band against the Deutsche Mark, despite raising interest rates and spending heavily on intervention. It remains one of the best-known currency crises in modern history.
• The EU referendum, 23 June 2016. As results came in overnight showing a vote to leave, sterling fell to its lowest level against the dollar since 1985 on 24 June, one of the largest one-day moves in its modern history.
• The flash crash, 7 October 2016. In thin Asian trading, GBP/USD dropped more than 6% within minutes before recovering much of the fall. A later Bank for International Settlements report pointed to the time of day and a combination of factors rather than a single cause.
• The mini-budget, September 2022. After the government's 23 September fiscal statement, sterling fell to an all-time low against the dollar in early Asian trading on 26 September, and the Bank of England intervened in the gilt market a few days later to restore order.

Each of these episodes moved sterling far beyond its normal daily range, and two of them happened when London was closed.

Trading GBP/USD as a beginner

• Size for the volatility. Cable usually needs wider stops than EUR/USD, so the position must be smaller to keep risk the same. Never size by margin alone.
• Know the UK calendar. CPI, labour data, MPC decisions and budgets are scheduled. Check the economic calendar guide before opening a trade.
• Beware political events and overnight gaps. Referendums, elections and fiscal statements can produce moves that jump stop-losses. Read gap risk and weekend risk and slippage explained.
• Avoid the thin hours. Most of sterling's worst surprises have come in the Asian session or around the rollover, when liquidity is lowest.
• Respect leverage. Under ESMA and FCA rules, retail leverage on GBP/USD is capped at 30:1, which still means a 3.3% move can wipe out a fully margined position. Most retail CFD accounts lose money. See leverage and margin.
• Keep a journal. Recording why and how you traded Cable, as described in keeping a trading journal, makes its quirks easier to learn.

Frequently asked questions

Why is GBP/USD called Cable?

From the 1860s, sterling–dollar exchange rates were sent between London and New York over the transatlantic telegraph cable. The nickname stuck and is still used on trading floors.

Is GBP/USD more volatile than EUR/USD?

Generally yes. Over most periods, GBP/USD has shown wider average daily ranges and sharper reactions to news than EUR/USD. That varies from year to year, so check recent behaviour before assuming either way.

What time does the Bank of England announce rates?

At 12:00 UK time on MPC decision days, eight times a year. The minutes and vote split are published at the same time.

What UK data matters most for GBP/USD?

Monthly CPI inflation and the labour market report, both released at 07:00 UK time by the ONS, usually have the most impact, followed by GDP and retail sales. Their effect depends on how far they differ from the consensus forecast.

Can I trade GBP/USD with a UK broker under the same leverage?

The UK's FCA applies retail leverage limits that mirror the ESMA rules, including 30:1 on major currency pairs such as GBP/USD. Professional clients can be offered more, but they give up some protections. See ESMA leverage limits and negative balance protection.