Major pair
GBP/USD through the Lens: cable, sessions and sweeps
GBP/USD is the price of one British pound in US dollars, with the pound as the base currency and the dollar as the quote. Known as cable, it is a major pair that usually moves more than EUR/USD. SMC traders watch the London open closely, where the Asia range is often swept before the session shows its direction.
Pair facts
| Base currency | GBP (British pound) |
|---|---|
| Quote currency | USD (US dollar) |
| Type | Major pair |
| One pip | 0.0001 |
| Usual quote | 5 decimals (the last digit is a tenth of a pip) |
| Pip value, standard lot (100,000 GBP) | 10 USD |
| Pip value, mini lot (10,000 GBP) | 1 USD |
| Pip value, micro lot (1,000 GBP) | 0.1 USD |
Pip values are exact in the quote currency (USD). In another account currency they change with the exchange rate. No prices, no levels, no forecasts on this page: it is a description of the pair, not a view on it.
What GBP/USD is
GBP/USD pairs the pound sterling, managed by the Bank of England, with the US dollar, managed by the Federal Reserve. It is one of the oldest actively traded exchange rates. The nickname cable goes back to the nineteenth century, when the rate between London and New York was sent through a telegraph cable laid across the Atlantic.
The pair is a major. Its longer moves are driven by interest rate expectations in the United Kingdom and the United States, by British inflation, wage and growth data, and at times by domestic politics. Sterling has a history of sharp reactions to surprises, which is part of why the pair has its reputation for speed.
When GBP/USD moves
London is the home market, so GBP/USD usually comes alive when London opens and stays active until London closes. British data is released in the London morning and United States data in the New York morning, so the pair has two natural bursts in a day, and the hours when both cities are dealing are usually the busiest.
In ForexLens terms, the London kill zone of 02:00 to 05:00 New York time is the window most associated with this pair, followed by the New York window of 07:00 to 10:00. The Asia window of 20:00 to 00:00 is typically slow for sterling and is mostly used to mark a range.
How GBP/USD tends to behave
GBP/USD usually covers more pips in a day than EUR/USD, and its moves often feel less smooth, with deeper pullbacks inside a trend. Its spread is tight for a pair of its size, though usually a little wider than the euro. Thin periods, such as the hours around the New York close, can produce abrupt moves.
It often travels in the same broad direction as EUR/USD, because both have the dollar as the quote currency, but the two regularly part ways when British and euro area news differ. Traders who hold both at once are often carrying more dollar risk than they realise.
How smart money concepts are applied to GBP/USD
The classic SMC reading on cable is built around London. The Asia session leaves a range, liquidity is said to rest above its high and below its low, and the London open pushes through one side. If price closes back inside, SMC traders call it a sweep; if the day then runs the other way, the first push is called a Judas swing. The three phases together are the power of three.
Because the pair moves further, the distance to a sensible stop is usually larger than on EUR/USD, which means a smaller position for the same risk. The position sizing page shows the arithmetic. To practise calling the opening fake-out as it prints, play Judas Swing.
GBP/USD questions
Why is GBP/USD called cable?
The name comes from the transatlantic telegraph cable. From the mid-nineteenth century the exchange rate between the pound and the dollar was transmitted between London and New York through a cable on the ocean floor, and dealers began calling the rate itself cable. The nickname has outlived the technology by more than a century.
What is one pip worth on GBP/USD?
A pip on GBP/USD is the fourth decimal place. The quote currency is the US dollar, so one pip is worth 10 US dollars on a standard lot of 100,000 pounds, 1 dollar on a mini lot and 10 cents on a micro lot. An account in another currency sees that amount converted at the current rate.
What time does GBP/USD move the most?
GBP/USD is usually most active around the London open and again during the hours when London and New York overlap, roughly 08:00 to 12:00 New York time. British data releases in the London morning and United States releases in the New York morning often mark the sharpest moments. This is a description of activity, not a recommendation.
Other pairs
Practise on simulated charts
ForexLens games use simulated prices on several pairs. Start with structure, then liquidity and sessions.