GBPUSD

Written by Nick Zelver

Fact checked by Wikitoro Team

Updated Mar, 2024

Setting the Scene

The GBPUSD currency pair, representing the Great Britain Pound and the US Dollar, is commonly known among traders as "the cable." This term dates back to the mid-19th century, originating from the transatlantic cable used for communication and currency trading between New York and London.

As two of the world's oldest currencies, the British Pound and the American Dollar form a highly regarded pairing in the financial world. Analysts and market watchers consider it one of the most attractive pairs for trading. Fortunately, this pair is also available for trading on eToro's forex platform. In this guide, I will delve into the specifics of trading GBPUSD and share personal insights that could be valuable to you.

Engaging in Forex CFDs

When trading GBPUSD on eToro, it's important to understand that you're engaging in CFD (Contract for Difference) trading. This means you're speculating on the currency pair's market movements rather than physically exchanging GBP for USD. The advantage of CFD trading is the ability to speculate on forex market movements without owning the actual currencies.

Notable Benefits of Using eToro for Forex Trading

Having traded this pair on eToro on several occasions, I've identified numerous benefits, including:

• User-Friendly Interface: Its platform is intuitive and easy to navigate, suitable for traders of all levels.
• Flexible Trading Schedule: The platform allows you to trade at your convenience, accommodating various trading strategies and time zones.
• No Transaction Fees on Currency Trades: eToro forex trading offers the advantage of no transaction fees on currency trades, enhancing profitability.
• Leverage Opportunities: The leverage options enable traders to open larger positions with a smaller capital commitment, potentially amplifying gains (while also increasing risks).

The GBPUSD Financial Instrument Page

Upon accessing the GBPUSD asset page on eToro, you'll be directed to the "Overview" tab. This primary section showcases several key features:

• Graph: Displays the asset's performance over time.
• About: Offers brief information about the GBPUSD pair.
• Latest News: Provides the latest news relevant to the pair, sourced from CityFALCON.
• People Also Bought: Highlights other popular currency pairs that traders are currently investing in.
• Copy Investors: Lists the top-performing traders focused on this currency pair. Clicking the "Copy" button next to a trader's name will lead you to the copy trading window.
• Discussions: Here, you can view posts and conversations from other traders interested in GBPUSD. The feed can be filtered to show either the top discussions or all discussions, and you have the option to like, comment on, or share these posts.

Available Trading Tools

What I particularly appreciate about this platform are the integrated tools that enhance trading this asset:

• Chart: Provides a live chart for GBPUSD, customizable to display time gaps from 1 minute to 1 week.
• News: Keeps you updated with the latest developments about GBPUSD, powered by CityFALCON. It also indicates the news mood as positive, negative, or neutral. The "Sentiment Trends" section below the news quantifies the general sentiment about the pair, displaying a chart with the 30-day average sentiment, average sentiment, and top stories for each day.

Trading GBPUSD on eToro's Platform

You might be asking, "How can I trade GBPUSD on eToro and what are the steps involved?" Let's break it down.

To trade GBPUSD, simply search for the underlying asset on eToro, choose "BUY" or "SELL," enter your investment amount, set your trading preferences, and execute the trade.

End of the Line

That's all there is to it. This guide covers all the essential aspects you need to know for trading the GBPUSD pair on eToro's web-based platform or mobile app. Remember to apply the tips mentioned here wisely in your forex trading journey.

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. 76% 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. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

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.