Hey everyone,
I’m still pretty new to forex and I keep seeing traders refer to GBP/USD as “Cable” in forums and chat rooms. I have no idea where this nickname comes from - is there some historical reason behind it?
Also, I’ve noticed that whenever people talk about difficult pairs to trade, Cable always gets mentioned. I’ve heard it’s really volatile and unpredictable, but I don’t really understand why it’s considered so much harder than other major pairs like EUR/USD or USD/JPY.
Can someone break this down for me? What makes GBP/USD so tricky to trade, and should I avoid it as a beginner? I’m curious about the backstory of the nickname too if anyone knows.
Thanks in advance!
Cable gets its name from the old telegraph cable that connected London and New York for price quotes.
I trade it sometimes but the spreads kill your profits. And it gaps like crazy overnight when UK news drops.
The origin of the Cable nickname is indeed tied to the telegraph cable between London and New York. It became widely used over time.
Many traders struggle with fake breakouts on Cable. A setup can look perfect, then suddenly reverse and hit your stops. This often happens with GBP compared to other pairs.
Additionally, the Bank of England can surprise the market. Their decisions can be less predictable than those from the Fed or ECB. Also, UK economic data tends to be more volatile.
I still trade Cable, but I use smaller position sizes and pay attention to the economic calendar first. Data on UK inflation or jobs can result in swift swings of over 100 pips.
Cable whipsaws harder than any major pair I trade.
The Cable nickname comes from the 1800s when exchange rates between London and New York got transmitted through the first transatlantic telegraph cable. Cool trading history.
Why’s it brutal to trade? I found out the hard way 5 years ago. Lost a decent chunk trying to scalp Cable during London session.
This pair moves fast and erratic. EUR/USD gives you smooth 20-30 pip moves, but Cable spikes 50 pips up then drops 40 down in minutes. The volatility constantly kills your stops.
Brexit made it worse. I remember days when Cable swung 200+ pips on random political news. Your technical analysis means nothing when some MP comments about trade deals.
I still trade it sometimes but only with wider stops and smaller positions. Spreads are higher too, especially during off hours. If you’re starting out, stick with EUR/USD until you can read price action. Cable will be there when you’re ready for the chaos.
