Why does GBPUSD enjoy the biggest/easiest price moves?

[JTrader]

Hi

the following are not all questions as such, more labelled points for discussion.

1. Of maybe the 10 main currency pairs, GBPUSD enjoys the biggest/easiest price moves, and has the biggest Average Daily Range. Yet cable price movements have decreased over the last year or so.

2. Why does GBPUSD enjoy the biggest/easiest price moves?

3. If this is because GBPUSD "volume" is thinner than eg. EURUSD, then it is surprising that other currency pairs in the top ten list, such as EUR/JPY do not enjoy similar moves, as you'd expect "volume"/participation in these pairs to be minimal.

4. USD/CHF is perhaps the next most volatile pair, with i think the 2nd biggest ADR, but it rarely trends in one direction for the whole (UK session) day, without reversing in the afternoon.

5. If you look at the minor pairs, the bigger the moves, the bigger spread you pay to trade the pair.
Therefore, It is slightly surprising that GBPUSD has the biggest moves, but among the narrowest spreads.
EG. on this basis you'd perhaps expect GBPUSD to have a wider spread than the likes of USD/CHF & EUR/JPY.

6. GBP/HKD for eaxmple - its price action patterns on a chart and the actual size of pip movements more or less are a mirror image of GBP/USD, but the spread is 7 pips with CMC compared with 3 pips for GBPUSD.
Therefore there are pairs that have similar size actual pip movements to GBPUSD but with much wider spreads.
For that reason it seems that of the top ten+ pairs GBPUSD is the best value pair to trade by far, if your interest is in capturing the trend.

Thanks.

 

[Crap Buddist]

Hi

the following are not all questions as such, more labelled points for discussion.

1. Of maybe the 10 main currency pairs, GBPUSD enjoys the biggest/easiest price moves, and has the biggest Average Daily Range. Yet cable price movements have decreased over the last year or so.

2. Why does GBPUSD enjoy the biggest/easiest price moves?

3. If this is because GBPUSD "volume" is thinner than eg. EURUSD, then it is surprising that other currency pairs in the top ten list, such as EUR/JPY do not enjoy similar moves, as you'd expect "volume"/participation in these pairs to be minimal.

4. USD/CHF is perhaps the next most volatile pair, with i think the 2nd biggest ADR, but it rarely trends in one direction for the whole (UK session) day, without reversing in the afternoon.

5. If you look at the minor pairs, the bigger moves that a pair experiences, the bigger spread you pay to trade the pair.
Therefore, It is slightly surprising that because GBPUSD has the biggest moves, but among the narrowest spreads. EG. on this basis you'd perhaps expect GBPUSD to have a wider spread than the likes of USD/CHF & EUR/JPY.
Therefore with narrow spreads, still regular trends that are bigger than the rest of the top ten pairs, cable seems the most "best value" pair to trade, with none of the others in the top ten coming close.

Thanks.

Hmm, the EURUSD has outpaced cable today in terms of range divided spread. In that sense cables lagging. big time.

 

[JTrader]

For me, its quite surprising that of the hundreds of currency pairs, and of the 10-20 main pairs, there is only cable that enjoys frequent/easy/big trends/price moves, with a small spreads like cable.

Sure, you can find pairs with similar size pip price moves/trends to cable but the spread is bigger.

You can find pairs with pip price movements/trends much bigger than cable, but it is all relative to a much bigger spread.

Ideally, I wish there was at least 3 pairs that were very similar to cable (gbpusd) in terms of these characteristics. Sadly, i don't know of any...........

 

[alexander]

Why does GBPUSD enjoy the biggest/easiest price moves?

Because, IMO, EUR/GBP must remain as stable as mush as possible (European cult). The last 2-3 years this pair moves in the band 0.7000 - 0.6500. Hence due to the high exchange rate with the USD there is an amplification factor of EUR/USD moves that in turn reflects in GBP/USD moves.

Plus, there is volatility due to current uncertainty in the UK, political and interest rates keep rising.

Alex

 

[JTrader]

So why have GBPUSD moves/trends/ADR decreased in size over the last year or two?

Is it due to an increased number of participants causing congestion - meaning that GBPUSD is becoming more like EURUSD?

If so, why then do none of the presumably less popular/less heavily traded pairs than GBPUSD, such as USD/CHF, EUR/JPY, NZD/USD, AUD/JPY etc. not enjoy similarly big price moves/trends to GBPUSD?

Many thanks.

 

[alexander]

So why have GBPUSD moves/trends/ADR decreased in size over the last year or two?

Is it due to an increased number of participants causing congestion - meaning that GBPUSD is becoming more like EURUSD?

If so, why then do none of the presumably less popular/less heavily traded pairs than GBPUSD, such as USD/CHF, EUR/JPY, NZD/USD, AUD/JPY etc. not enjoy similarly big price moves/trends to GBPUSD?

Many thanks.

By the way, I just went short at 1.9933. Looking for profit at 15-min chart, 38.2% Fibo retracement from 1/6 at 1.9891. Stop at 1.9947

Alex

 

[JTrader]

GBP/CAD is a pair that is similar to GBPUSD in terms of size of moves, but the typical 10 pip spread is an off-putting factor....the same can be said for GBP/CHF which also had a typical 10-pip spread.

 

[JTrader]

Perhaps the best thing to do would be to identify a handful of currency pairs that represent the best value in terms of size of spread v's size of moves, ADR etc.:idea:

Of the top 10+ or so pairs, I think that the point i am trying to make is that GBPUSD seems to be firmly in the number one position, with no competition anywhere close behind....