Overview of GBP
The British Pound Sterling (GBP) is said to currently be the fourth most traded currency in the world, which explains its importance in the financial markets and amongst traders. As expected, it follows behind the USD, EUR and JPY, which form part of some of the strongest currency pairs and safe haven currencies on the markets. That being said, much like all the other currencies, the strength of the GBP is impacted by global, economic and political conditions, amongst several other factors, which is what the fluctuations in its value can be partially attributed to. For example, global economies took a huge knock in 2020, as the world saw reduced activities between countries as guided by law and regulations. This invariably impacted the strength of currencies and the forex market. Closer to home, the GBP was further rocked by Brexit, however, it remained resilient amid all the uncertainty and instability it was faced with. While some may argue that the GBP has become somewhat less attractive because of recent tumultuousness, many beg to differ. As evidence of this, it is still named amongst some of the most appealing currencies to invest in across the globe.
Why you should investin Pounds
As already noted, the GBP remains a crucial currency on the financial markets, more so when coupled with the most globally traded currency, the USD. It is therefore not a surprise that this currency pair is regarded as one of the major pairs, and forex trading in USD and GBP remains of interest to many, given how active the American and British economies are in global trade.It is imperative for traders to stay informed on the latest currency fluctuations and market developments in order to make the most of their investment or trading activity. Below are just five of the many reasons why one should learn about and consider investing in Pounds on the forex market:
As it forms part of one of the leading currency pairs, GBP/USD, Pounds are always of interest to forex traders and investors. Given the nature of trading and how it demanding it can be, traders are always on the lookout for potentially lucrative opportunities to trade Pounds as it is often quite active on the markets.
Access to resources
Due to the abovementioned ongoing activity, traders have a wealth of resources at their disposal to improve their chances of truly capitalising on the markets. Many brokers offer tools, historic data, real-time information and regular updates on the GBP to allow forex traders to make informed decisions. Therefore, the GBP is worth investing in because one will never be short of guidance or data to consistently refer to while trading.
With the GBP forming part of the third-most traded currency pair, it is testament of how appealing it is to traders and how active it is in global trade and economic activity. Moreover, it remains attractive because of its spreads and lack of slippage.
In addition to the above, investing in Pounds on the forex market remains worthwhile because traders can extract a larger number of pips because of how volatile the GBP/USD pair is. For day traders, this presents endless potentially lucrative opportunities.
Apart from the major global and political conditions in recent times, the GBP is generally a very stable and safe currency with hardly ever any surprises. This provides a certain level of comfort and reassurance for those who decide to invest in it on the forex market. It is therefore considered a dependable currency.