Lowest Spread Forex Brokers For GBP/USD
On any trading platform, there are two prices for each financial instrument – the Bid and the Ask. When buying or going long, traders use the Ask Price, while the Bid Price is used for selling or going short. The difference between the Bid and Ask Price represents the spread. It is an income for the broker (fee), which is also a cost for the trader. Unlike a forex demo account which doesn't realize the spread as a real cost, live trading accounts the spread as a real fee that is automatically applied in every position. Therefore, it has become common sense that the lower the spread, the better it is for traders.
Most brokers offer the lowest spread on several popular pairs, which one of those kinds is GBP/USD. This pair is known to be very volatile, with the daily price movement is up to 160 pips. Furthermore, GBP/USD is also believed to be "applicable" for Scalpers or Speculators. If you wish to trade on the lowest spread forex brokers for GBP/USD, please take a look at a list below.
What is the best time to trade GBP/USD?
During the London session and the overlap with the New York session, in which the pair is most active due to data releases and impactful announcements from the UK, European, and the US. During this time, the pair is famous as one of the most volatile trades in the financial market.
How many pips does GBP/USD move daily?
As a major currency pair known for its volatility, GBP/USD can move around 100 pips a day. Day traders love volatile currency pairs because they offer good opportunities to capture big profits in a short period of time. To check the real-time price movement of GBP/USD and other pairs, go to the forex volatility chart.
Do GBP pairs move together?
Each of GBP pair is correlated to one another. The relationship may depend on what position does GBP serve in a pair. For example, a currency pair with GBP as the base currency would have a positive correlation and thus move together with other similar pairs (for example: GBP/USD and GBP/CHF, GBP/NZD and GBP/AUD, and so on.) On the other hand, pairs with GBP as the quote currency would have negative correlations with GBP/USD and its kinds. For instance, GBP/USD would move opposite EUR/GBP since the GBPs are in different positions.
Will GBP/USD go up?
It depends on the current market sentiment surrounding the currency pair. If the sentiment is bullish for Pound, the market tends to buy GBP and causes the price to move up. On the other hand, bearish sentiment typically drives the market to sell GBP and brings down the price movement. Analyzing the next movement is best using the combination of technical and fundamental analysis.