GBP/USD strategy: cable is volatile — what do you do about it?

Cable moves further and gaps more than most majors, with UK political and data noise layered on top. Strategies that work on EUR/USD often need wider stops and smaller size here.

GBP/USD strategy: cable is volatile — what do you do about it? — moving average crossover diagram
A fast moving average crossing a slower one

How do you trade cable?

  • the volatility adjustments you make
  • the UK releases that matter most to you
  • the gap or spike that reshaped your approach
GBP/USD strategy: cable is volatile — what do you do about it? — risk-reward diagram
A risk-reward ratio of 1 to 2

The major pairs guide and flash crash guide frame cable's character.

Background: Major, minor and exotic currency pairs explained

How to read a currency quote, which pairs count as majors, crosses and exotics, and why spreads and risks differ so much between them.

What are the seven major currency pairs?

EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, USD/CHF and NZD/USD.

What is a cross currency pair?

A pair of major currencies that doesn't include the US dollar, such as EUR/GBP or GBP/JPY.

Read the full guide

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