Between many other currency pairs in the Forex market, GBP/USD is perhaps the most risky currency pair. On the other hand, with minimal guidance it is possible to trade GBPUSD very easily without any fear of losses.

Pound is one of the oldest traded currencies in the forex market as well as the most famous currency among the traders. GBP/USD is one of the most important currency pairs of the FX market due to the fact that GBP and USD are the major carriers of the market.

Trading GBPUSD pair is something which most traders love due to many factors. One of the biggest factors that make this particular currency pair so famous is due to the fact that this is the most liquid currency pair in the FX market. GBPUSD pair is known as the Cable by traders. Although it’s the most liquid currency pair, but GBP is considered very risky and only experienced and risk loving traders invest in GBPUSD pair.

Factors you need to know to win when trading GBPUSD

There are some factors that should be kept in mind if you want to win the trade while trading GBPUSD. Before discussing the winning rules and strategies, let’s have a look at the importance of this particular pair in the forex world.

GBP is the official currency of the London UK, which has the oldest and most busiest financial market. The GBP fluctuates very sharply and the price rise and falls are very high making it a favorite currency of many traders as they can earn huge profits from large fluctuations. GBP is an unpredictable currency and thus it carries a lot of margins with it if traded wisely.

GBPUSD is a very volatile as well as unpredictable currency pair; therefore you need to be very careful when trading this pair. The price of the currency pair can move anywhere anytime proving suicidal for you. You will be always advised by your broker and other experienced forex traders about the riskiness of GBP. So it is recommended that you must trade in this pair only when you are sure enough that you will win, otherwise don’t take any chances if you cannot bear loss.

Before investing in GBP, explore and learn the GBPUSD pair for some time. Try to emphasize on fundamental analysis as much as you can, and try to avoid technical analysis due to the high volatility of the pair. Start with small amount trades and then gradually increase the trade amount when you find yourself on the track. Once you will get an insight of the GBPUSD pair, you will start loving it. It’s a fact that once you will get hold of this pair, then you will never trade in any other pair, due to huge profits and margins.

GBP/USD pair becomes a simple thing after trading it for a while. Keep monitoring the economical conditions of the Great Britain and keep on reading out some major fundamental analysis of GBP, and then start trading after detailed study of a month or two. The more you will trade, the more you will learn and more you will earn.

Author's Bio: 

There are numerous way to get your earnings from GBPUSD currency pair, including day trading. Find out more about it on day trading techniques. To the broker, I would suggest TradingPoint, read the explanations on Trading Point details.