whats affect the value of the GBP? - Forex Questions and Answers - FXAnswer

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whats affect the value of the GBP?

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9 months ago

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0 Votes GBP is normally driven by the usual factors such as Interest Rate, Economy, Inflation, etc... Being that GBP does not have a commodity anchor, it is sometimes sensitive to risk sentiments and of course, the general strength/weakness in the Euro. Two important pairs to watch out for if you are trading GBP is EURGBP and GBPUSD, as the former one shows the general sentiment in Europe and the latter one shows the general sentiment globally. If you are trading other crosses, such as GBPJPY or even the GBPNZD, you need to understand that neither pairs have significant share in the Forex market, so any technical analysis for the pairs won't be accurate in my opinion... but if you do your analysis based on GBPUSD or EURGBP, you are likely to get a more accurate prediction for the Sterling. by Henry Liu 9 months ago by Henry Liu 9 months ago

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GBP is normally driven by the usual factors such as Interest Rate, Economy, Inflation, etc... Being that GBP does not have a commodity anchor, it is sometimes sensitive to risk sentiments and of course, the general strength/weakness in the Euro. Two important pairs to watch out for if you are trading GBP is EURGBP and GBPUSD, as the former one shows the general sentiment in Europe and the latter one shows the general sentiment globally.

If you are trading other crosses, such as GBPJPY or even the GBPNZD, you need to understand that neither pairs have significant share in the Forex market, so any technical analysis for the pairs won't be accurate in my opinion... but if you do your analysis based on GBPUSD or EURGBP, you are likely to get a more accurate prediction for the Sterling.