FOREX · GBPUSD · MARKET GUIDE
British Pound / US Dollar
Sterling against the dollar: often wider daily ranges than EURUSD, the same pip convention, and why stop placement matters.
Written by fxRuleBook Editorial TeamReviewed by: awaiting named reviewerLast updated
Overview
GBPUSD, nicknamed “cable”, responds to Bank of England and Federal Reserve expectations and UK economic releases.
Its typical ranges can be wider than EURUSD, so the same risk budget often supports a smaller position.
| Item | Typical convention |
|---|---|
| Standard lot | 100,000 GBP |
| Pip | 0.0001 |
| Fractional pip (tick) | 0.00001 |
| P&L currency | USD (quote currency) before conversion |
ILLUSTRATIVE POSITION-SIZING EXAMPLE
Sizing a GBPUSD trade from the stop
| Account / risk | $10,000 at 1% = $100.00 |
|---|---|
| Hypothetical entry → stop | 1.25 → 1.243 (distance 0.00700) |
| Ticks / pips | 700 ticks · 70.0 pips |
| Loss per lot at stop | $700.00 |
| Position size (rounded down) | 0.14 lots |
| Risk after rounding | $98.00 |
Hypothetical round prices; 70-pip stop.
Risk-management considerations
- UK data surprises can cause abrupt moves.
- Liquidity thins outside London and New York hours.
GBPUSD journal template
Record these alongside each GBPUSD trade.
- 01Pip distance to stop
- 02Session at entry
- 03UK data scheduled
Frequently asked questions
Is GBPUSD more volatile than EURUSD?
Its ranges are often wider, though this changes over time. Size from your actual stop.
What is the pip size?
0.0001 on most platforms.
Educational content only. No live prices, historical data, signals or forecasts are shown. Contract details are illustrative until verified with your broker.