Pretty much everybody knows about currency pairs like the USD/GBP – these are the popular Forex trades that nearly every currency trader dabbles in. But just because it’s popular doesn’t mean that it’s the best, and some of the more underrated currency pairs can actually provide quite a bit of bang for your buck. The GBP/KWD currency pair is a fantastic example.
Trading this currency pair makes complete sense – after all, the two economies are closely linked together, with a substantial portion of trade flowing between the two countries. This particular trade is known for its stability and predictability, which enables traders to generate consistent returns on what is an often-underrated pair. That said, understanding the fundamentals of this currency pair is an important part of being able to take advantage of what it has to offer, and this guide aims to inform you of all the most important points you need to know when trading the GBP/KWD.
As simple as this concept seems, it’s often misunderstood by many newer traders. All currency pairs have a seasonal element to their performance – this is largely tied to the nature of the economies that these currencies depend upon. While you can’t be an expert on every economy, you can look up several decades of historical data relating to these currencies, which will give you a sense of what the long-term trends look like for pairs such as the GBP/KWD.
In many cases, GBP/KWD price dips in March and May are not uncommon, while for the pair to peak in the fall is also, once again, not uncommon. This doesn’t always exactly hold, but it is largely true for most currency pairs, GBP/KWD included. All forex trades have historical charts that you can access; giving you exact rates of change that will help you predict the general trend of a currency in the near-term. These aren’t just for veteran traders – anybody can access them entirely for free. All currency pairs have their own unique seasonal trends, so never fail to do your research before you commit to making a trade
You might have heard some people refer to forex scalping as a form of cheating. It isn’t – but what it happens to be is a very effective way to reduce your overall losses while maximising your overall gains if used correctly. Watching the small price movements of the GBP/KWD throughout the course of a day will position you to make the greatest profit. If you want to take advantage of this, keep three Exponential Moving Average charts near you – this will allow you to fully view every possible forex trade that you can make as well as view relevant technical information for each potential trade. Many of the most profitable traders utilise this technique, and you should too.
Don’t hesitate to take advantage of the GBP/KWD currency pair. Its relative anonymity will soon disappear as more traders become aware of how lucrative it can be, and knowing how to trade it effectively can net you some serious profits over the long term. This guide will provide you with all of the most important facts and tips, but ultimately you are responsible for arming yourself with the knowledge that you need to succeed when trading GBP/KWD.
Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.
Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.