GBP/USD — sterling against the US dollar, nicknamed "Cable" — is a major Forex pair known for bigger, faster moves than EUR/USD. More movement means more opportunity and more risk.
Why it's called Cable
The name dates to the 19th century, when the GBP/USD rate was transmitted across a transatlantic telegraph cable. The nickname stuck.
What makes Cable move
- Bank of England vs the Fed — the interest-rate gap between the UK and US is the core driver.
- UK data and politics — inflation, growth and political headlines can spark sharp moves.
- Risk sentiment and the dollar — like all dollar pairs, broad risk-on/risk-off shifts matter.
Character of the pair
Cable tends to be more volatile than EUR/USD, with wider intraday ranges and slightly larger spreads. That suits traders who want movement — but it also means stops need room and position sizes need to be smaller to keep risk constant.
Trading it sensibly
- Best hours — the London and London–New York overlap, like most majors. See the best time to trade Forex.
- Trade structure — enter near a clear support or resistance level with the higher-timeframe trend.
- Size for the volatility — a wider stop on a fast pair means a smaller lot to keep risk fixed. Use the position-size calculator.
Cable rewards traders who give it room and respect its speed — and punishes those who over-size into the noise.
Education only — not financial advice.