What is GU in Forex
While reading or trading on Forex you have encounter someone saying GU. While it consists of two letters it is common to use that letter combination.
GU is short from of GBP USD where traders use first letter from each word.
GBP is short from Great Britain Pound which is official currency of Great Britain.
USD is short from U.S. Dollar which is official currency of United States of America.
When you combine these two words you get GBPUSD trading pair that is also known as major trading pair.
GU in Forex is major trading pair because those two currencies are the most traded currencies together with Euro, Canadian dollar and Japanese Yen.
You will find other combinations with these two currencies, like GJ which is GBPJPY.
Read more: What is GJ in Forex
What is GU Meaning
GU means GBP USD trading pair that is well known in Forex. It also means we have two currencies that are compared to each other.
When you write GU = 1.2578, it means that one GBP is worth 1.2578 USD. When you want to buy one GBP you will need to give 1.2578 U.S. dollars.
GU in Forex means currency pair value and when one currency is rising in value other currency is falling in value.
Trader job is to define where the price of a trading pair will move. Will it rise or will it fall down.
When the price of GU is falling down it means GBP currency is losing its value against U.S. dollar.
When the price of GU is rising it means GBP is gaining in value against U.S. dollar. The movements of the price are expressed with number of pips per hour or a day.
While GBPUSD is highly volatile pair, GBPUSD is known as a high volatile pair with high pip range. Take a look on the image below.
EURUSD have different pip range on each trading session in a day and on each day in a week.
If you want to know more about what is GBPUSD pair and how much pips does the GBPUSD moves per day or a week check the article about GBPUSD pip range.
Read more: GBPUSD pip range
GU in Forex is combination of two currencies. It is standard pairing of two currencies that are traded one against other.
Each currency in GU represent currency of certain country. GBP represents British pound and USD represents U.S. dollar.
Using GU or GBPUSD is the same but mostly used combination is GBPUSD that clearly represents currency traded.
If you want to learn more about other combinations of currency pairs like what is XAU you can read the article about what is XAU in Forex.