Trading The Cable: GBP/ USD

Question 1

The name …: comes from the first transatlantic cable that was laid across the floor of the ocean for the US and UK to communicate with one another

Answer 1

Cable

Question 2

….% of volume traded in the FX Markets takes place through London

Answer 2

35

Question 3

…. approaches often look to buy when price is cheap and at support and sell when the price is expensive or at resistance

Answer 3

Range-trading

Question 4

For traders looking to trade … during the more active times in the market, when liquidity is coming from Europe and the United States, breakout trading maybe more accommodating

Answer 4

GBP/ USD

Question 5

Differing from the Asian session, … and … may be broken much more frequently as the onslaught of liquidity entering the market can potentially push price in one direction for an extended period of time

Answer 5

Support; resistance

Question 6

A key component of trading breakouts is looking for strong … - … ratios, such as the 1:5 version (20 pips at risk - 100 pips sought) {2 winning trades at 100 pips each = 200 pips won, 3 losing trades at 20 pips each = 60 pips lost, net profit of 140 pips (200-60) not including commissions, slippages, etc.}

Answer 6

Risk - reward

Question 7

If a trader was right …% of the time, they could be looking at a handsome profit

Answer 7

40

Question 8

Regarding strategies to trade breakouts, traders can look to the …

Answer 8

Price Channel Indicator