GBP / USD is a currency pair that buys and sells British pounds and US dollars.
The pound is the fourth largest circulation currency, and the dollar has the largest circulation volume. Therefore, these two currency pairs are highly liquid and highly moving. Britain is the center of finance in Europe and is also a popular currency as a carry trade, so liquidity is getting higher.
This currency pair is also said to be a currency murderer. Although it is easy to acquire profits because the price movements are intense, but not suitable for beginners. However, since it is the most frequently traded currency pair in the world, it is mostly explained on Forex sites in many cases, and a pair of currencies where information is easily obtainable.
Looking at the chart of GBP / USD over the past 10 years, the highest value is 2.0814, minimum value is 1.4310, and in the 10 years the value moves by 0.7000. Unlike dollar yen, 1 pips is 0.0001 in dollars and becomes 100 pips in 0.01.
Spreads are not so wide, so it's a good idea to target profits with strategies that focus on scalping and day trading. However, since price movements are intense, if lot number is large, it may become loss cut with rapid price movements, loss may swell by moving to one side. Just because the strategy is in good shape, increasing the number of lot sometimes causes a massive loss from a sudden loss.
Since the time zone of the 17:30 UK index is the time the value often moves greatly, it can move more than 100 pips in a moment, so if you want a safe trade, it would be better to avoid this time zone. On the contrary, there is a way to aim for a big profit in this time zone, but beginners should stay out of this. Another time to aimed at is the US indicator at 21:30, and this time zone also often moves greatly. By the way, these are at the time of daylight saving time, if it is winter time it will be one hour later each.
Although it is the optimal currency pair to target profits in the short term, there are also cases where GBP / USD does not trade because the loss may become large accordingly. As an intense currency pair with violent fluctuations, the long-term trade is risky. It will be a currency pair for short-term trade. Since it is the point to decide quickly in a short-term trading, even if you use a strategy, loss may expand if you miss the timing of trade.
It is hardly attach with swap, selling swap is bought around -15 yen, and swap can be brought to around 15 yen per day. If you do swap trade it would be better to use other currency pairs. Since it does not swap very much, even if a negative swap is attached it does not much affect the profit. Even if you have a positive swap, it is better to think about it as something to receive.