GBPUSD=X Trading

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The Ultimate Guide to Trading GBPUSD With eToro

The currency pairing of GBP/USD or the Great Britain Pound and the US Dollar, is also referred to by traders as "the cable". To trade the pair, financial market players calls it as “trading the cable”. This phrase is said to have originated from the old days of mid-19th century when transatlantic cable was used for exchanging communications and currency trading between New York and London.

Today, foreign exchange can be transacted without the need of a central location. Traders in New York, London and other parts of the world can trade currency pairs electronically and 24-hours a day. As two of the oldest currencies in the world, the British Pound and the American Dollar forms a solid currency pairing every financial watchers and analysts believes is one of the most appealing money pairs to trade.

Table of Contents

  1. History of the GBP/USD
    When did the pound sterling and dollar start trading? (32sec)
  2. GBP/USD in a Nutshell
    Facts about "the cable" (32sec)
  3. Understanding the Pip of the GBP/USD
    What is a pip in GBPUSD? (43sec)
  4. Best Time to Trade GBP/USD
    Ideal times to day trade this pair (10sec)
  5. Why Is the GBP/USD One of the Most Traded Pairs in the World?
    Reasons why this is a most commonly traded pair (32sec)
  1. Trading GBP/USD via CFD
    How to trade FX via CFD? (33sec)
  2. Why Trade Currency Pairs in eToro?
    Can you trade forex on eToro? (16sec)
  3. How to Trade GBP/USD Currency Pair on eToro?
    Step-by-step guide (28sec)
  4. GBPUSD Price
    Is GBP/USD going up today? (25sec)

etoro gbpusd banner

Already thinking of trading GBPUSD with eToro?

If you're considering of investing on "The Cable" right now then you better click on the button below to get started. This will open eToro's trading page for GBP/USD. Should you wish to continue, simply open an account with them but don't worry, this will only take a few minutes to do.


YES, TRADE GBP/USD NOW!

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

History of the GBP/USD

The Pound is an older currency than the United States dollar as it started circulation in the Anglo-Saxon kingdoms during the 8th century with an exchange rate of 240 pennies per 1 pound.

Compared to the US Dollar which traces its origin back to 179s during the same time of the drafting of the United States Constitution, the US dollar compliments the Euro very well because the two currencies represent the most influential economic regions in the planet.

More than 200 years old, the US dollar has since become the most traded currency in the world, making it the top reserve currency as well.

GBP/USD currency pair
GBP/USD currency pair

GBP/USD in a Nutshell

Considered as one of the least volatile currency pairs in the forex market, the Great Britain Pound and US Dollar also has its own seen its share of challenges lately such as the European debt crisis, the US financial crisis of 2008 and the EU referendum on Brexit. This means, just like other currency pairings, the pair is highly reliant on economic, political stability and other events such as inflation, employment and unemployment rates of both countries.

Other than the political climate, the financial institutions of both countries such as the US Federal Reserve and the Bank of England can also influence the price of the GBP/USD.

Understanding the Pip of the GBP/USD

The pip is a term describing the incremental change in value of a currency. It is a standard unit of measure used to gauge fluctuation in the foreign exchange market.

To determine the pip price of the GBP/USD, you need to understand what a pip is. For example, the GBP/USD trades at 1.50020 and the exchange rate changes to 1.50030, it means the pip increased by a single pip. The fourth number following the digital points is the pip.

For computation of the pip price of GBP/USD, you may use 1k lot as a basis. If an example pip of the currency pair is 0.0002, or 1/20000 of 1 USD, you can multiply this by 1000 and come up with a product of $.20. This is the pip value of the 1k micro lot of the Great Britain Pound and US Dollar pair.

Best Time to Trade GBP/USD

Most traders prefer trading during the European trading session when the United Kingdom market releases its current economic data. Volatility always follows during the start of the American trading session.

Why Is the GBP/USD One of the Most Traded Pairs in the World?

A close third behind the EUR/USD and USD/JPY, Great Britain Pound and the US Dollar has cemented its spot in the the top three list of most traded currency pairings in the world. You might wonder what makes this pairing work. Wonder no more as here's two growing reasons why traders continue to have faith on this pairing:

  1. The United States and Great Britain are owners of not only the oldest modern economies we have today.
  2. Loads of liquidity and volatility surrounds this pair. An abundance in liquidity allows traders to enter and the market with relative ease.

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Trading GBP/USD via CFD

Forex traders are trending towards the CFD (Contract-for-Difference) trading method when engaging in currency pair trades. CFD provides traders extra wiggle room to speculate the volatility of the forex market without requiring owning physical currencies. With the Great Britain Pound and the US Dollar performing as two of the world’s strongest currencies, more traders are embracing the pair via CFD trading.

Contract for difference (CFD) is the agreement between a client and a broker, where one will agree to paying the other the difference in prices from the beginning to the conclusion of the trade. Using the CFD method in trading forex gives forex traders to use greater leverage.

Why Trade Currency Pairs in eToro?

Known for the app’s usability and user-friendly interface, eToro also permits traders to trade on their own time with zero transaction fees on currency trades. eToro also allow traders to trade for $30 for every $1 in their portfolio because it gives out a x30 leverage for currency pairs.

How to Trade GBP/USD Currency Pair on eToro?

  1. Login or create an account with eToro if you don't have one.
    eToro web-based platform
    eToro web-based platform
  2. Click "Discover".
    Clicking "Discover" on eToro
    Clicking "Discover" on eToro
  3. Select "Currencies".
    Selecting Currencies on eToro's platform
    Selecting Currencies on eToro's platform
  4. Choose "GBPUSD".
    Looking for GBPUSD on eToro's list of currencies
    Looking for GBPUSD on eToro's list of currencies
  5. Choose "BUY" or "SELL" depending on the how you wish to trade.
    Buying or selling GBPUSD in eToro
    Buying or selling GBPUSD in eToro
  6. Enter an amount or number of units you wish to trade.
    Entering amount to invest on GBPUSD via eToro
    Entering amount to invest on GBPUSD via eToro
  7. Set the stop loss, leverage, and take profit parameters.
    Setting the stop-loss, leverage and take profit on GBPUSD trade
    Setting the stop-loss, leverage and take profit on GBPUSD trade
  8. Click "Open Trade".
    Executing GBPUSD buy order on eToro
    Executing GBPUSD buy order on eToro

GBPUSD Price

Currently, this currency pair has a 52-week range of $1.26746 - $1.42500 and a 1-year return of 7.75%. Historically, the pair reached a record high of $2.4546 in November 1980 and an all-time low of $1.042 in February 1985.

Want to know the current value of the GBPUSD pair? At the time this page was loaded on your browser, it's rate is . Keep in mind that forex rates are constantly changing so the price you are seeing may no longer be its real-time value.


Got your eyes on GBPUSD now?

If you are, you can just click the button below and this will take you to eToro's online trading platform for GBPUSD. Take note that this is the live platform but if you would like to explore or use it, you will have to open an account by clicking the "Sign up" button on that page.


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eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.



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*67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.