GBP/USD (English Pound-dollar).
This currency pair is famous for very big movements. For more long-term trading decisions it is necessary to consider scale of the market volatility, to make bargains in smaller volume and to expect on bigger size of stop orders. The Pound-dollar is famous with frequent false making of resistance and support levels that should be necessarily considered at acceptance of trading decisions. It seems to some beginners that if Pound bargains against dollar, that means, currency pair Pound-dollar can duplicate dynamics of movement of the price of Euro-dollar. But I warn at once, the given assertion is erroneous. Any time this currency pair moves equally, but once rates can go absolutely to counter parties. For beginners the given currency represents average degree of complexity of trade that is quite comprehensible. Therefore can trade safely, but be careful. Forecasts on the given currency pair rather often come true, with relative frequency, but much more often in comparison with forecasts on Yen. The pair hardly reacts to the political data of own country, therefore news of Great Britain will be not superfluous for the traders who have chosen given currency pair.
As well as Yen-dollar it is very unpredictable pair. Among professional traders the given currency pair has some popularity. And here this derivative instrument will seem to beginners rather difficult. Banks and the financial centers predict movement badly enough, sometimes only guessing a movement direction.
It is even more unpredictable and dangerous currency pair. Therefore it is better to beginners to refrain from trade on it. And at inclusion of the given pair in the arsenal it is recommended to professionals more carefully polish skills of the conclusion of bargains.
As it is not surprising, but the given instrument is predicted enough and can be successfully used by beginners. For the analysis of movement traders often use the schedule of currency pair Euro-yen that often duplicates movements, but does them earlier. Therefore at times beginners use this period of time to have time to bargain, and often enough remain in a prize. But it is not necessary to begin at once trade by the given technique. At first of all it is necessary for perfecting on a demo account and to get used to habits of the given currency pair. The analytics on the given currency is rather bad quality of the forecast, therefore it is necessary to expect only for the abilities. For beginners the given currency will quite approach.
It is the most silent and quiet currency pair. If attentively to study the schedule it is visible that at times movement of currency pair does not exceed several items, and on week intervals there were cases that the pair was not beyond a corridor from 10-20 items. But it is necessary not to forget that the price of one item is very high, therefore even small movements give rather notable changes on the deposit. Forecasting of the given currency pair, as a rule, comes true at forecasts for rate falling. And here at growth there are unpredictable jumps is more often.
It is not important what currency pair will choose the trader; always it is necessary to remember that the Forex market is changeable.
Before you make up your mind to make a forex investment or start forex trading yourself, better find a good forex book and learn more about the currency exchange market – this will save you from lots of troubles and traps.