This currency pair represents the British Pound in relation to American Dollars. The GBP is the 4th most important currency in the world, and the pair is the 3rd most-traded within the global standards. This is because it represents ten percent of the total turnover on the foreign exchange market.
The USD is used as a reserve commodity whilst the GBP is a leading currency for offshore investments and transactions such as swaps and forwards. This pairing is often referred to as a ‘cable’ because transactions used to be carried out via transatlantic undersea cable in the past.Trade GBP=