What are cable swings in trading?

<p id="isPasted">"Cable swings" refers to the price movements or "swings" of the GBP/USD currency pair, which is colloquially known as "the cable" in the forex market.&nbsp;</p><p><strong>Why is it called "The Cable"?</strong></p><p>The nickname originated in the mid-19th century when exchange rates between the British pound and the U.S. dollar were transmitted via a transatlantic telegraph cable laid under the Atlantic Ocean. While modern communications use fiber optics and satellites, the term remains standard industry slang for the GBP/USD pair specifically.&nbsp;</p><p><strong>Characteristics of Cable Swings</strong></p><p>Trading these swings is a popular strategy due to the pair's unique market personality:&nbsp;</p><ul><li>High Volatility: The cable is known for being more "aggressive" and "brawling" than other pairs like EUR/USD. It often features sharp spikes, deep pullbacks, and sudden reversals.</li><li>Significant Momentum: Because it represents two of the world's largest economies, it has deep liquidity and high trading volume, which can lead to powerful, sustained directional moves.</li><li>Macro-Reactive: Swings are heavily influenced by economic indicators like Bank of England (BoE) and Federal Reserve interest rate decisions, inflation data (CPI), and political events like those following Brexit.</li><li>"Trap" Machine: Traders often note that the cable frequently violates technical structures (like support or resistance) to "trap" retail traders before reversing and moving in the actual intended direction. </li></ul><p><br></p>