Backtest GBP/USD for free

GBP/USD, nicknamed "cable", is more volatile than EUR/USD. Bigger daily ranges mean bigger opportunities and bigger stop distances.

GBP/USD at a glance

• Pip: 0.0001
• Pip value (1 standard lot): about $10
• Busiest: London open and the London and New York overlap
• Moves on: Bank of England decisions, UK inflation and jobs, US data

How GBP/USD behaves

Moves are quicker and more abrupt than on EUR/USD, with sharp spikes around the London open and UK data. Spreads are usually a little wider.

What moves GBP/USD

• Bank of England decisions and the path of UK interest rates
• UK inflation (CPI), jobs and GDP releases
• US data and the Federal Reserve, because the pair has the dollar on the other side

Tips for backtesting GBP/USD

• Allow for wider stops than on EUR/USD and size down to keep the risk the same
• Backtest the first hour after the London open on its own: spikes are common
• Check the UK data calendar before replaying a day

Frequently asked questions

Why is GBP/USD more volatile than EUR/USD?

The UK economy is smaller and more sensitive to data surprises, and fewer traders are in the pair, so the same order flow moves price further.

Which stop size should I use on GBP/USD?

There is no single answer. Many traders base the stop on the recent average range, such as 1.5 times the ATR. Backtest a few options.