Forex glossary
GBP/USD (Cable)
GBP/USD, commonly called cable, states US dollars per British pound. GBP is the base and USD the quote currency. It is a major pair under retail convention, while its spread and volatility require provider-specific and period-specific data.
Illustrative example
How does it work in practice?
At a hypothetical GBP/USD rate of 1.2500 USD per GBP, you buy 800 GBP for 1,000 USD before fees. Selling at an actual 1.2600 produces an 8 USD price gain.
A case to work through
Sterling against dollars and euros
Model: GBP/USD rises from 1.2500 to 1.2600 and EUR/GBP from 0.8500 to 0.8600.
- The first move means more USD per GBP.
- The second means more GBP per EUR, so GBP weakened against EUR.
What follows? State the other currency when describing a move.
Example boundary: This model establishes neither cause nor future direction.
A useful distinction
GBP/USD (Cable) / EUR/GBP
EUR/GBP prices the euro in GBP; GBP/USD uses GBP as its base.
Check your understanding
Interpret two separate currency relationships together.
Show the answer and explanation
It strengthened against USD and weakened against EUR
Each pair describes a separate relationship.
Pair units and result currency
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Related terms
Sources and documentation
- Saxo: major-pair convention
A common retail majors list rather than legal margin categories.
- ECB: euro reference exchange rates
Currency units and reference quotations, not executable prices or invented case datasets.
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.