The GBP/USD currency pair is extremely liquid: it is one of the world's most liquid pairs. Currently, the British pound serves as the base currency or counterparty currency in approximately 6% of all foreign currency transactions. Along with the EUR/USD, USD/JPY, and USD/CHF, it is one of the four most liquid currency pairs in the forex market. One reason for this high liquidity is the UK's extensive development of capital markets. Many foreign investors who previously invested in the United States have transferred their funds to the United Kingdom, and in order to invest, foreigners must convert their local currency into British pounds.
Many speculators trade the pound sterling on a regular basis: until recently, the pound sterling had one of the highest interest rates among the currencies of developed countries. Despite having higher interest rates, Australia and New Zealand's financial markets are not as developed as the UK's. As a result, many traders who held positions or were interested in opening new carry trade positions frequently used the British pound as their investment currency and opened long positions in British pounds versus currencies with lower interest rates, such as the US dollar, Swiss franc, and Japanese yen.

The British pound (GBP), also known as sterling, is one of the world’s oldest currencies still in use. Key features include its status as the official currency of the United Kingdom and its widespread use in global trade and finance. The pound is divided into 100 pence. The Bank of England issues and manages the currency, ensuring monetary stability. The GBP is known for its relatively high value compared to other currencies, making it a popular choice for forex traders. It plays a significant role in the global financial system, particularly in foreign exchange markets. The pound's value is influenced by factors such as economic data, interest rates, and political events, particularly Brexit-related developments.