British pound down more than 500 pips
Key points
- GBP/USD has gone from above 1.3100 in July to under 1.2600
- GBP/USD spent 62% of 2022 under 1.2500 based on daily close prices
- Over a 30-year horizon, GBP/USD spent a majority of the time above 1.2500
GBP/USD price action
British pound hit yearlong highs over 1.3100 against US dollar in mid-July, and has since fallen over 500 pips. This week, GBP/USD has traded around 1.2600 after last Thursday's 100 pip slide closed under 1.2570.
Given this price history and different time horizons, multiple trading strategies can be right. A pair such as GBP/USD could go lower in the short term and higher over a longer period, or vice versa. Traders should consider time horizons when formulating their stance on price action to clarify expectations on each trade.
How to trade GBP/USD
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on GBP/USD
Trading forex requires an account with a forex provider like tastyfx. GBP/USD can be found in tastyfx's platform under the 'Major' pairs tab. Many traders also watch major forex pairs like EUR/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like tastyfx’s YouTube channel. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
This information has been prepared by tastyfx, a trading name of tastyfx LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. tastyfx accepts no responsibility for any use that may be made of these comments and for any consequences that result. See our Summary Conflicts Policy, available on our website.
