Sterling, also referred to as “Cable” by many traders, is a cross currency pair that represents the ongoing strength battle between the Great British Pound vs United States Dollar - two economic powerhouses. This cross pair sits firmly within the top three for most actively traded currency pairs within the foreign exchange industry.
The British economy with the overall the pound strength in general, continues to feel the aftermath of the UK leaving the European Union. Brexit can be considered to be one of the most destructive four-month periods, and the consequence was an absolute meltdown in price for the pair as it tanked over 3000 Pips lower. Sterling eventually found support at 1.2000, creating a multi-year low.
Although slow, the value of GBP/USD has been steadily recovering for the past 12 months. After consolidating for around 6+ months shortly after the Brexit crash, various fundamental announcements have helped the pound regain strength & there now seems to be higher hopes for the valuation and British economy.