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GBP is the abbreviation for the Great British Pound, which is the currency of the United Kingdom. The forex market is the largest and most liquid financial market in the world, where currencies are exchanged 24 hours a day, five days a week. The daily range of a forex pair is the difference between the high and low prices of that pair over a specific period, usually 24 hours.
The daily range of a forex pair is a critical metric for traders, as it tells them about the volatility of that pair. Volatility refers to the degree of price fluctuations of a financial instrument over a specific period. Highly volatile pairs offer traders more opportunities to profit from price movements, but they also come with higher risks. On the other hand, less volatile pairs are less risky but provide fewer trading opportunities.
Now let’s discuss which GBP forex pairs have the highest daily range.
GBP/JPY:
GBP/JPY is one of the most volatile forex pairs, with a daily range averaging around 150 pips. The pair is a cross between the British Pound and the Japanese Yen. Both currencies are considered safe-haven currencies, which means they are in high demand during times of economic uncertainty. The pair is also influenced by the monetary policies of the Bank of England and the Bank of Japan.
GBP/USD:
GBP/USD is the most traded forex pair globally, accounting for around 14% of the daily forex turnover. The pair has a daily range of around 100 pips, making it one of the most volatile GBP pairs. The pair is influenced by a range of factors, including economic data releases from the UK and the US, political events, and monetary policies of the Bank of England and the Federal Reserve.
GBP/CHF:
GBP/CHF is a cross between the British Pound and the Swiss Franc. The pair has a daily range of around 80 pips, making it one of the most volatile GBP pairs. The Swiss Franc is considered a safe-haven currency, and the pair is influenced by the monetary policies of the Bank of England and the Swiss National Bank.
GBP/CAD:
GBP/CAD is a cross between the British Pound and the Canadian Dollar. The pair has a daily range of around 80 pips, making it one of the most volatile GBP pairs. The pair is influenced by a range of factors, including economic data releases from the UK and Canada, political events, and monetary policies of the Bank of England and the Bank of Canada.
GBP/AUD:
GBP/AUD is a cross between the British Pound and the Australian Dollar. The pair has a daily range of around 70 pips, making it one of the most volatile GBP pairs. The pair is influenced by a range of factors, including economic data releases from the UK and Australia, political events, and monetary policies of the Bank of England and the Reserve Bank of Australia.
In conclusion, GBP forex pairs with the highest daily range offer traders more opportunities to profit but also come with higher risks. Traders need to carefully analyze the factors that influence the pairs they trade and develop a trading strategy that suits their risk tolerance and trading goals.
