GBP/USD Explained: Cable, What Moves It and Pip Value
GBP/USD is the price of one British pound in US dollars, known in the market as cable. In the BIS survey of April 2025 it accounted for 7.6% of global foreign exchange turnover, down from 9.5% in 2022. Factors that commonly move it include Bank of England and Federal Reserve policy, UK and US economic data, UK politics and global risk appetite. In a US dollar account, one pip on a standard lot is worth $10.
Key takeaways
- GBP/USD shows how many US dollars one British pound buys; the pound is the base currency and the dollar the quote currency.
- Traders call GBP/USD "cable".
- In the BIS survey of April 2025, GBP/USD made up 7.6% of global FX turnover, down from 9.5% in 2022.
- Factors that can move the pair include Bank of England and Fed policy, UK and US data, UK politics and global risk appetite; no single factor explains it.
- One pip is 0.0001; in a US dollar account, one pip on a standard lot is worth $10.
At a glance
- Nickname
- Cable
- Share of FX turnover
- 7.6% (April 2025)
- One pip
- 0.0001
- 1 pip, 1 standard lot
- $10 (USD account)
What is GBP/USD?
GBP/USD is the exchange rate between the British pound sterling and the US dollar: how many dollars one pound buys. The pound is the base currency and the dollar is the quote currency. At GBP/USD 1.2700 (an illustrative rate, used in all examples on this page), one pound costs 1.2700 dollars. When the pair rises, the pound strengthens against the dollar: how to read currency pairs.
GBP/USD is one of the major currency pairs. In the Bank for International Settlements (BIS) survey of April 2025, it accounted for 7.6% of global foreign exchange turnover, down from 9.5% in 2022; USD/CNY (8.1%) moved ahead of it in 2025.
Why is GBP/USD called cable?
In market commentary and on trading desks, GBP/USD is often simply called cable. Broker glossaries such as IG’s trace the nickname to the transatlantic cable that carried the sterling-dollar exchange rate across the Atlantic, the first of which were telegraph cables laid in the 19th century. The explanation is widely repeated, but we have not found it in an official source.
What moves GBP/USD?
No single factor explains an exchange rate; several act on GBP/USD at the same time:
- Monetary policy: interest rate decisions and expected policy at the Bank of England and the Federal Reserve, and changes in the expected gap between UK and US rates.
- Economic data: UK and US inflation, growth, employment and retail sales figures, especially when they differ from expectations.
- Politics and fiscal policy: UK elections, budgets and trade relations can move the pound.
- Global risk appetite: in periods of market stress, demand for US dollars often changes.
GBP/USD pip value
GBP/USD is quoted to four decimal places: one pip is 0.0001. Because the dollar is the quote currency, the pip value in a US dollar account is fixed:
| Lot | Units | Value of 1 pip |
|---|---|---|
| Standard (1.00) | 100,000 pounds | $10 |
| Mini (0.10) | 10,000 pounds | $1 |
| Micro (0.01) | 1,000 pounds | $0.10 |
In an account in another currency, the value is converted at the current rate: what is a pip, pip value calculator.
A micro lot short on GBP/USD
Assumptions: US dollar account; 0.01 lots (a micro lot) sold at 1.2700 and closed at 1.2640; spread, commission and swap excluded.
- Move: 1.2700 − 1.2640 = 60 pips in the position’s favour.
- Profit: 60 pips × $0.10 = $6.
- If the price had risen to 1.2760 instead, the loss would have been the same $6.
How short positions work: long and short positions.
GBP/USD volatility, trading hours and costs
- Volatility: GBP/USD can move more sharply than EUR/USD around major UK data and political events. Sizing a position from the stop distance keeps the planned amount at risk the same when the stop is wider, although gaps and slippage can exceed it: position sizing, position size calculator.
- Trading hours: turnover is usually highest during the London session and when London and New York are both open, about 8:00 AM to 12:00 PM New York time for most of the year: forex market hours.
- Spread and swap: a quote of 1.2700 / 1.2702 (illustrative prices) means a 2-pip spread; the spread can widen around data releases and the daily rollover, and positions held overnight are charged or credited a swap based mainly on the UK and US interest rate gap plus the broker’s markup: what is a spread in forex, what is a swap in forex.
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Frequently asked questions
What does GBP/USD mean?
It is the price of the British pound in US dollars. At GBP/USD 1.2700 (an illustrative rate), one pound costs 1.2700 dollars; the pound is the base currency and the dollar is the quote currency.
Why is GBP/USD called cable?
Cable is the market nickname for GBP/USD. Broker glossaries such as IG's trace it to the transatlantic cable that carried the sterling-dollar exchange rate across the Atlantic; it is a widely repeated explanation rather than an officially documented one.
What moves GBP/USD?
Factors include Bank of England and Federal Reserve interest rate decisions and expectations, UK and US inflation, growth and jobs data, UK political and fiscal news, and global risk appetite. No single factor explains the exchange rate.
How much is 1 pip on GBP/USD?
One pip is 0.0001. In a US dollar account it is worth $10 on a standard lot (100,000 pounds), $1 on a mini lot and $0.10 on a micro lot.
Is GBP/USD more volatile than EUR/USD?
It can move more than EUR/USD around major UK data and political events, but volatility changes over time and neither pair is always the more volatile. Check recent price ranges before setting a stop and position size.
When is GBP/USD most active?
Usually during the London session and the overlap of the London and New York sessions, about 8:00 AM to 12:00 PM New York time for most of the year.
Sources
Regulatory and official sources
- Triennial Central Bank Survey 2025, foreign exchange turnover tables, Bank for International Settlements
- Monetary policy, Bank of England
- Federal Open Market Committee, Board of Governors of the Federal Reserve System
Industry and news sources
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Glossary terms
- Pip
A pip is the standard unit for measuring price changes in a currency pair: 0.0001 for most pairs and 0.01 for pairs quoted in Japanese yen.
- Volatility
Volatility is how much and how quickly a currency pair’s price moves over a period. Higher volatility means larger price swings and, for the same position size, greater risk.
- Spread
The spread is the difference between the bid (sell) price and the ask (buy) price of a currency pair. It is one of the main trading costs and is usually measured in pips.
First published 18 October 2026. Last fact-checked 18 October 2026.This article is for educational purposes only and is not investment advice.