This is not financial advice, only compilation of what happened to be in the past.

Nicknamed “The Cable”, GBP/USD is known for sharp movements, political sensitivity, and large intraday ranges. It is one of the most emotional and fast-moving major pairs. GBP/USD is kinda riskier than EUR/USD, faster than AUD/USD, and more unpredictable than USD/JPY—but that same chaos gives excellent opportunities for strong moves. (See also: 7 major Forex pairs)

1. General Behavior of GBP/USD

High Volatility

Typical daily range: 80–150+ pips
During high-impact news: 200–300 pips possible
Much higher volatility than EUR/USD

Whipsaws & Stop Hunts

Cable is notorious for:

Stop-loss hunting
Sharp reversals
Fake breakouts
Sudden pushes during London session

Clean Moves During Trends

When GBP/USD trends, the moves are strong and directional because:

UK monetary policy changes fast
The British Pound reacts stronger to rate expectations

2. Daily Timing & Behavior (GMT0)

GBP/USD is extremely time-sensitive. It behaves differently during each session.

Asian Session (00:00 – 06:00 GMT)

Very low liquidity
Small ranges (5–20 pips)
Price drifts sideways
Often consolidates before London

Traders avoid large positions here; it’s mostly pre-breakout accumulation.

London Open (07:00 – 09:00 GMT)

This is the most explosive time for GBP/USD.

Expect:

Massive volatility
London “fake moves”
Stop hunts above/below Asian highs
30–80 pip bursts

This period feels like the market is “testing” both sides before deciding a real trend.

London Session (07:00 – 11:00 GMT)

After the initial spike:

More stable trend develops
Liquidity increases dramatically
GBP/USD respects technical levels well

Professional traders love this session.

New York Session (12:00 – 16:00 GMT)

Very important for GBP/USD.

Behavior:

Large second wave of volatility
Clean pullbacks and reversals
Strong reactions to US news (CPI, NFP, FOMC)

GBP/USD generally trends in one session and retraces or continues in the other.

After 17:00 GMT

Market becomes very slow
Spreads widen
Best avoided unless swing trading

3. Recurring Events That Move GBP/USD

GBP/USD is driven by both Bank of England (BoE) policy and US Federal Reserve (Fed) decisions.

Below are recurring top-impact events.

United Kingdom Events

Bank of England (BoE) Monetary Policy

(Every 4–6 weeks)
This is the most important event for GBP/USD.

Moves can exceed 100–200 pips depending on interest rate changes and BoE tone.

BoE Governor Andrew Bailey Speeches

A single unexpected statement can send GBP/USD flying.

UK CPI (Inflation) – Monthly

Inflation is currently the core driver of UK monetary decisions.
Expect strong moves every release.

UK GDP + Monthly Economic Reports

Directly affects growth expectations and BoE policy.

Employment Data (Claimant Count, Wage Growth)

UK tends to have sharp reactions to employment data.

PMIs (Manufacturing, Services)

These are fast-moving leading indicators, often causing a 30–60 pip spike.

United States Events

GBP/USD reacts heavily to US data such as:

NFP (Nonfarm Payrolls)
CPI
FOMC interest rate decisions
Fed speeches
Unemployment Claims
ISM PMIs

Any USD strength/weakness causes direct, large-scale movements in Cable.

4. Price Behavior & Character Traits

Here’s what makes GBP/USD special:

1. Moves Fast and Violently

Cable moves with:

Momentum
Emotion
Overreactions

Beginner traders often get stopped out repeatedly.

2. Prone to Fakeouts

It’s common to see:

Sudden wicks
Big spikes before reversals
Liquidity grabs above/below key levels

Understanding liquidity is key.

3. Reacts Strongly to Political News

The Pound is sensitive to:

Elections
Brexit-related updates
Unexpected government policy changes
UK economic challenges

GBP/USD often moves dramatically after these events.

4. Larger Pullbacks

Compared to EUR/USD, Cable has:

Deeper dips
Wider retracements
Sharper reversals

Even in trends, a 40–70 pip pullback is normal.

5. Volatility Patterns

Average True Range (ATR):

Low volatility cycles: 60–80 pips/day
High volatility cycles: 120–180 pips/day
News days: 200–300 pips

GBP/USD is one of the top 3 most volatile major pairs.

6. Correlations to Watch

Asset / Pair	Correlation	Why It Matters
EUR/USD	Positive	European economies linked
GBP/JPY	Highly volatile cousin	Moves even stronger
UK 10-year Gilts	Positive	Higher yields strengthen GBP
DXY Index	Negative	Strong USD → GBP/USD drops
FTSE 100	Usually negative	Strong FTSE → weaker GBP