GBP/USD is the price of one British pound in US dollars. Traders call it “Cable”, after the transatlantic telegraph cable that once carried the quote between London and New York. It moves mainly on the gap between Bank of England and Federal Reserve interest rate expectations, and it usually travels further in a day than EUR/USD.
Key takeaways
- Sterling was on one side of 10.2% of all currency trades in April 2025, down from 12.9% in 2022, according to the Bank for International Settlements.
- Bank of England decisions are announced at 12:00 UK time, eight times a year. UK inflation and jobs data arrive at 07:00 UK time, before London is fully open.
- One pip is 0.0001 and is worth $10 on a standard lot, the same as EUR/USD.
- UK budget and political news can move the pound sharply. In September 2022 GBP/USD fell to a record low near $1.03 after an unfunded tax-cutting budget.
- Wider daily ranges mean the same lot size carries more risk than in EUR/USD.
| What the quote means | US dollars needed to buy one pound |
|---|---|
| Base / quote currency | Pound sterling (GBP) / US dollar (USD) |
| Nickname | Cable |
| Sterling share of FX turnover | 10.2% of trades (BIS, April 2025) |
| Pip | 0.0001, the fourth decimal place |
| Pip value, 1.00 lot | $10 |
| Contract size, 1.00 lot | 100,000 GBP |
| Most active window | 07:00–16:00 UTC, peaking in the London–New York overlap |
| Central banks to watch | Bank of England, Federal Reserve |
| Symbol at Marketsall | GBPUSD |
What is GBP/USD and how is it quoted?
The pound is the base currency and the dollar is the quote currency, so a price of 1.3000 means one pound costs $1.30. A rising chart means a stronger pound or a weaker dollar. The platform shows a bid and an ask; the gap is the spread. If pairs and quoting are new to you, read what forex trading is and major, minor and exotic pairs first.
The pound is one of the oldest currencies still in use and London remains the largest currency trading centre in the world, handling roughly 38% of global turnover. That is why sterling liquidity is deepest during London hours and thins out quickly once London goes home.
What moves GBP/USD?
| Driver | How it tends to work | What to watch |
|---|---|---|
| Interest rate expectations | If markets expect UK rates to stay above US rates, sterling tends to gain. If the Fed looks tighter than the Bank of England, GBP/USD tends to fall. | Bank of England decisions and vote split, FOMC meetings, two-year gilt and Treasury yields |
| UK inflation and wages | Services inflation and pay growth shape how long the Bank of England keeps rates high. | UK CPI, average earnings, US CPI on the other side |
| Growth and jobs | The surprise against forecasts matters more than the number itself. | UK GDP, PMI surveys, Non-Farm Payrolls |
| Fiscal policy and gilts | Budgets that worry bond investors can weaken the pound even when yields rise, because the rise reflects risk rather than return. | Budget statements, gilt auctions |
| Risk sentiment | Sterling tends to weaken against the dollar when markets are stressed. | Equity indices, risk-on vs risk-off |
| Politics | Elections, trade relations with the EU and leadership changes can reprice the pound quickly. | Election calendar, policy announcements |
The 2022 lesson: higher yields do not always help a currency
On 26 September 2022 GBP/USD dropped to a record low near $1.03 within days of a budget that promised large unfunded tax cuts. Gilt yields jumped at the same time. In normal conditions higher yields attract money; here they signalled doubt about the public finances, and the currency fell with the bonds. It is a useful reminder that the rate story in how interest rates affect currencies, stocks, gold and bonds depends on why rates are moving.
When is GBP/USD most active?
| Event | Local time | UTC (summer / winter) | Frequency |
|---|---|---|---|
| Bank of England decision | 12:00 UK time | 11:00 / 12:00 | Eight times a year |
| UK CPI | 07:00 UK time | 06:00 / 07:00 | Monthly |
| UK labour market data | 07:00 UK time | 06:00 / 07:00 | Monthly |
| US CPI | 08:30 ET | 12:30 / 13:30 | Monthly |
| US Non-Farm Payrolls | 08:30 ET | 12:30 / 13:30 | Monthly, usually first Friday |
| FOMC statement | 14:00 ET | 18:00 / 19:00 | Eight times a year |
UK data at 07:00 lands before most London desks are active, so the first reaction can be sharp on thin volume and partly reverse later. Slippage is more likely then. See London vs New York sessions, when the forex market is most active and the economic calendar.
GBP/USD pip value and position size
A pip in GBP/USD is 0.0001 and, because the dollar is the quote currency, its dollar value is fixed.
| Lot size | Units | Value of 1 pip | Value of a 50-pip move |
|---|---|---|---|
| 1.00 (standard) | 100,000 GBP | $10.00 | $500 |
| 0.10 (mini) | 10,000 GBP | $1.00 | $50 |
| 0.01 (micro) | 1,000 GBP | $0.10 | $5 |
Suppose GBP/USD is at 1.3000 (an illustrative price) and you open 0.10 lots. The position is worth £10,000, or $13,000. At 1:200 leverage the margin is $65. An 80-pip move against you, which is an ordinary day for this pair, is an $80 loss, more than the margin posted. Position sizing should start from the loss you can accept, not from the margin the platform asks for.
GBP/USD vs EUR/USD vs EUR/GBP
| Feature | GBP/USD | EUR/USD | EUR/GBP |
|---|---|---|---|
| What it expresses | Pound against the dollar | Euro against the dollar | Euro against the pound, with the dollar removed |
| Pip value per 1.00 lot | $10, fixed | $10, fixed | £10, varies in dollars |
| Central banks | Bank of England, Fed | ECB, Fed | ECB, Bank of England |
| Typical character | Wider daily ranges, reacts strongly to UK data | Deepest liquidity, tightest spreads | Slower, often range-bound |
| Read more | This guide | EUR/USD guide | EUR/GBP guide |
Long GBP/USD and long EUR/USD together is largely one short-dollar position. See correlated positions.
What it costs to trade GBP/USD as a CFD
At Marketsall GBP/USD is traded as a CFD: no currency is delivered and your account is credited or debited with the price difference. See what a CFD is and spot FX vs CFDs.
| Cost | When it applies | Note for GBP/USD |
|---|---|---|
| Spread | Every trade, at entry | Usually a little wider than EUR/USD, and widest around the 07:00 UK data releases and late in the New York evening |
| Commission | Not charged on currency trades at Marketsall | Cost is built into the spread |
| Swap | Positions held past the daily rollover | A credit or debit that depends on the gap between UK and US interest rates and on your direction. See triple swap Wednesday. |
| Slippage | Fast markets, gaps, news | Most likely around Bank of England decisions, UK CPI and US data |
Key risks
Leverage. Wider ranges mean a given lot size can lose more in a day than the same size in EUR/USD.
UK event risk. Bank of England decisions, CPI and budget statements can move the pair through a stop level before it fills.
Fiscal and political shocks. September 2022 showed how quickly confidence can change.
Weekend gaps. News between Friday and Sunday can open the price away from the close. See holding trades over the weekend.
Risk warning. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on this website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money.
Frequently asked questions
Why is GBP/USD called Cable?
The name comes from the transatlantic telegraph cable laid in the nineteenth century, which carried the pound–dollar exchange rate between London and New York. The nickname stuck with traders and is still used for GBP/USD today.
How much is one pip worth in GBP/USD?
One pip is 0.0001. On a standard lot of 100,000 pounds a pip is worth $10, on a mini lot $1 and on a micro lot $0.10. The value is fixed in dollars because the dollar is the quote currency.
When is GBP/USD most active?
GBP/USD is most active between 07:00 and 16:00 UTC, during London hours, with the largest moves usually between 12:00 and 16:00 UTC when New York is also open. UK data at 07:00 UK time and Bank of England decisions at 12:00 UK time are the main scheduled triggers.
Why is GBP/USD more volatile than EUR/USD?
Sterling is traded less than the euro, so the same order flow moves the price further. The UK economy is also smaller and more sensitive to domestic data and budget news. The result is wider typical daily ranges, which makes position size more important.
What caused the pound to hit a record low in 2022?
In late September 2022 the UK government announced large tax cuts without saying how they would be funded. Investors sold UK government bonds and the pound together, and GBP/USD fell to a record low near $1.03 on 26 September 2022 before recovering as the policy was reversed.
Related reading
Read gilt yields alongside Cable
Next time gilt yields jump, check what is driving them before reading the move as good news for sterling; how bond yields influence global markets sorts yield rises into growth, inflation and supply cases. GBP/USD is listed as GBPUSD under Currencies on MetaTrader 5 and Web Trader.
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