Hey Flora... How you doing... ??
Are you watching for the collapse on the GBPJpy... :-)
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Trading Forex
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What is special about GBP/USD
The prime window is when the markets are open in both the UK and the US. Therefore, the best time to day trade the GBP/USD is between 080 and 100 GMT, plus 120 and 150 GMT. Here you will find the biggest daily moves and the spreads will have a reduced influence on profit.
GBP / USD pair has a long history. Trade has been going on between these two currencies for so long that there is no way to state any kind of relative value for an original Pound other than to its Dollar exchange rate.
The pound is the base currency in in this pair meaning that the price is quoted as 1: 1.30 where 1.30 is the US dollar. So in this pair if the dollar is rising the trended graph will be falling. The pair is colloquially known as ‘Cable’ after the Atlantic cable which transmitted prices across the ocean floor in the past.
Why is the GBP/USD pair so popular? Well, when this pair breaks it tends to break quite strongly one way or the other. This makes it attractive for day traders and in the London morning it is a big part of the daily trading volume. But GBP/USD often has catching up to do on the news cycle with the activity from the Eastern Session.
A large portion of the historical Forex rates between the two currencies have been governed by the gold standard. The modern concept of the GBP/USD exchange rate didn’t really begin until the early 1970s, in fact. This was when both the US and the UK moved to floating exchange rates.
Jumping forward to 2016 brings us to the Brexit vote. We can see from the historical data from that period just how pronounced the effect of the leave vote was on the value of the Pound. The Brexit vote saw GBP breaching lows not seen in over 30 years of Forex historical data. In fact, it was the weakest the Pound-Dollar rate has been since the low from 1985. The crucial difference is that in the 1980s it was more about Dollar strength, whereas the move in June 2016 was all about Sterling weakness.
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What is special about EUR/USD
The EUR/USD pair is neutral-to-bearish in the near-term and could move alongside GBP/USD during the upcoming thinned sessions. The 4-hour chart shows that it's trading around a mild bearish 20 SMA while still above the larger ones, which maintain their bullish slopes.
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