GBP/USD Pair Continues to Fluctuate Amid Ongoing Brexit Uncertainty

The GBP/USD pair is one of the most traded and liquid currency pairs in the world, representing the relationship between the UK pound and the US dollar.

Its pairing, known as the 'cable', refers to the historical undersea telecoms cables that carried bid and ask quotes across the Atlantic Ocean between London and New York.

The pair has witnessed significant volatility throughout its history, characterized by multiple price fluctuations. In May 1985, it reached a record low of 1.06, while in March 1972, it hit a record high of 2.64.

In recent years, the GBP/USD has been affected by various economic events, including the Great Recession and Brexit. During the crisis, the pair dropped below 1.40, losing over a third of its value as investors flocked to the US dollar. In June 2016, it shed 10% in one trading session after the UK voted to leave the European Union.

The uncertainty surrounding Brexit has continued to impact the pound, with the pair fluctuating between 1.20 and 1.34 throughout 2020. It reached a multi-year low of 1.144 in March 2020 due to market turbulence amid the Covid-19 pandemic and post-Brexit trade deal uncertainty.