Trading GBP/USD with FundingPips: Pound Sterling Prop Trading Guide

GBP/USD is my second-most traded pair on FundingPips, behind EUR/USD. It's faster, more volatile, and when it moves, it moves hard. That volatility is both the opportunity and the risk—especially on a prop firm account where one bad day can eat a significant chunk of your drawdown.

Cable (the trader's nickname for GBP/USD) rewards precision and punishes hesitation. If EUR/USD is the sensible daily commute, GBP/USD is the sports car—faster, more responsive, but easier to crash if you're not paying attention.

Strategy disclaimer: The approach here is what I've used personally across multiple FundingPips accounts in both evaluation and funded phases. Your results depend on execution, risk management, and how well this aligns with your trading style.

For the complete strategy framework I use on FundingPips—including how to handle static drawdown on evaluation vs. funded-stage rule changes, position sizing formulas for each account type, VWAP-based entries, and exit rules built around the Tuesday Payday cycle—check out my comprehensive FundingPips strategy guide. It covers evaluation tactics through daily payout scaling, all based on real funded account experience. For the absolute latest, check FundingPips' website or their FAQ section.

Why GBP/USD Works on FundingPips

GBP/USD offers several advantages on a FundingPips account:

Higher average daily range. Cable typically moves 80-120 pips per day, compared to EUR/USD's 60-90 pips. This means more profit potential per trade when you catch a move. On evaluation accounts targeting 8% (Phase 1 of 2-Step Standard), this extra range helps you reach the target faster.

Tight spreads during London session. FundingPips offers RAW spreads, and during peak London hours GBP/USD typically runs 0.2-0.8 pips. This is competitive and keeps your trading costs manageable.

Session overlap opportunities. GBP/USD is most active during London session (3 AM - 12 PM ET) and the London/New York overlap (8 AM - 12 PM ET). These windows provide concentrated volatility that day traders can exploit within a few hours rather than watching screens all day.

Clear technical structure. Cable respects support/resistance levels, VWAP, and moving averages with reasonable consistency. The pair trends well during London session and mean-reverts more during Asian session—creating two distinct trading approaches for different times of day.

GBP/USD Specs on FundingPips

Commission: $5 per standard lot round turn (2-Step Standard, 1-Step, 2-Step Pro). $7 per round turn on Zero accounts.

Spread: RAW spreads, typically 0.2-0.8 pips during London/NY sessions. Can widen to 2-5 pips during rollover (5 PM ET) and Asian session low-liquidity periods.

Leverage: Up to 1:100 on 2-Step Standard. Up to 1:50 on Pro, 1-Step, and Zero.

Swap: Applicable for overnight holds. Check your platform for current swap rates—they change with central bank rate differentials (Bank of England vs. Federal Reserve).

Trading hours: Sunday 5 PM ET to Friday 5 PM ET (continuous forex market hours).

Position Sizing for GBP/USD on FundingPips

GBP/USD's higher volatility means you need to adjust position sizing compared to EUR/USD. Using the same lot size as EUR/USD with wider stops on Cable means taking more risk per trade.

My position sizing framework (2-Step Standard $50K):

For a 25-pip stop loss (typical for EUR/USD setups), 1.0 lot risks approximately $250 (0.5% of account).

GBP/USD setups often need 30-40 pip stops due to higher volatility. At 35 pips with 1.0 lot, you're risking approximately $350 (0.7% of account). That's fine on evaluation, but on a funded account with the 5% daily loss limit ($2,500), seven consecutive losers at that size would breach daily drawdown.

My approach: I trade GBP/USD at roughly 70-80% of my EUR/USD position size. If I'm trading 1.5 lots on EUR/USD, I trade 1.0-1.2 lots on Cable. The reduced lot size accommodates the wider stops while keeping risk per trade consistent in dollar terms.

Position sizing by account phase:

Evaluation Phase 1: 0.8-1.0 lots on $50K (aggressive, targeting faster profit accumulation)

Evaluation Phase 2: 0.6-0.8 lots on $50K (slightly conservative, protecting progress)

Funded Master: 0.5-0.7 lots on $50K (preserving capital, focusing on consistency)

These sizes assume 30-40 pip stop losses. Adjust proportionally for your stop distance.

Best Times to Trade GBP/USD on FundingPips

Prime window: London/NY overlap (8 AM - 12 PM ET)This is when both London and New York are active simultaneously. GBP/USD sees its highest volume, tightest spreads, and cleanest directional moves during this window. Major economic releases from both the UK and US tend to fall in this period.

70% of my GBP/USD trades happen in this 4-hour window. It's the highest-probability environment for Cable setups.

Secondary window: London open (3 AM - 8 AM ET)The London open often creates a directional move that sets the tone for the day. GBP/USD tends to establish its daily range during these hours. Good for breakout entries and trend-following setups.

Avoid: Asian session (8 PM - 3 AM ET)Cable is thin during Asian hours. Spreads widen, false breakouts increase, and the pair often chops sideways in a 20-30 pip range. Unless you have a specific mean-reversion strategy for low-volatility environments, avoid trading GBP/USD during Asian session on a prop account.

Avoid: Rollover period (4:45 PM - 5:15 PM ET)Spreads blow out and liquidity drops during daily rollover. If you have a position open, this is not the time to manage it. Close or set wide stops before this window.

Three GBP/USD Setups That Work on FundingPips

Setup 1: London Open Range Breakout

When: 3:00-4:30 AM ET (first 90 minutes of London session)

Logic: After Asia's tight range, London traders enter and create directional volume. The first significant break of the Asian session high or low often continues for 30-50 pips.

Entry: Wait for GBP/USD to break above the Asian session high (or below the low) with a strong 15-min candle. Enter on the close of the breakout candle or on the first pullback to the breakout level.

Stop loss: Below the Asian low (for longs) or above the Asian high (for shorts). Typically 25-40 pips depending on the Asian range width.

Take profit: 1.5-2x the risk, or the next significant daily level. On a 30-pip stop, target 45-60 pips.

Frequency: 2-3 times per week. Not every day produces a clean breakout.

Setup 2: VWAP Pullback During NY Overlap

When: 8:30 AM - 11:30 AM ET

Logic: After GBP/USD establishes a directional bias in London, the pair often pulls back to VWAP during the NY overlap before continuing. These pullbacks offer entries with defined risk and strong momentum on the continuation.

Entry: Wait for price to pull back to VWAP (or the 20 EMA, which often aligns). Enter when price shows rejection from VWAP with a confirming candle (pin bar, engulfing, or strong close in the trend direction).

Stop loss: 15-25 pips below/above VWAP depending on the structure.

Take profit: Previous session extreme or the next key level. Typically 30-50 pips.

Frequency: 3-4 times per week. The VWAP pullback is the most reliable Cable setup in my experience.

Setup 3: Session Extreme Fade (Late NY)

When: 12:00 PM - 3:00 PM ET

Logic: By late NY session, GBP/USD has often extended to its daily range extreme. If the pair is testing the daily high/low and showing exhaustion (RSI divergence, volume drying up, long wicks), a mean reversion trade back toward VWAP can produce 20-30 pips.

Entry: Price at or beyond the expected daily range extreme, showing clear rejection. Enter on the first reversal candle with stop above/below the extreme.

Stop loss: 15-20 pips beyond the session extreme.

Take profit: 20-30 pips, targeting a return to VWAP or the session midpoint. Don't hold for a full reversal—this is a scalp, not a trend trade.

Frequency: 1-2 times per week. Only take this when the extension is obvious.

GBP-Specific News Events to Watch

On FundingPips funded accounts, news trading is restricted—no opening or closing trades within 5 minutes of high-impact events. These are the key GBP events that trigger the restriction:

Bank of England (BoE) Interest Rate Decisions — Usually 8 releases per year. The most impactful event for Cable. Expect 50-150 pip moves on surprise decisions.

UK CPI (Consumer Price Index) — Monthly release, typically 2 AM ET. Drives BoE expectations and can move Cable 40-80 pips.

UK Employment Data — Monthly. Unemployment rate and earnings growth affect BoE policy outlook.

UK GDP — Quarterly and monthly estimates. Less volatile than CPI or BoE decisions but still capable of 30-50 pip moves.

UK Retail Sales — Monthly. Moderate impact, usually 20-40 pips.

PMI Data (Manufacturing & Services) — Monthly "flash" releases can move Cable 20-40 pips.

On the US side, all the standard USD events also impact GBP/USD: NFP, CPI, FOMC decisions, GDP, retail sales. During funded trading, track both countries' economic calendars.

My practice: I check the calendar Sunday evening and highlight all GBP and USD events for the week. On event days, I either avoid trading Cable entirely or ensure all positions are opened well before the event window and use wide enough stops to survive the volatility.

GBP/USD vs. EUR/USD on FundingPips: When to Trade Which

I don't trade both simultaneously. That's doubling your exposure to USD since both pairs are essentially long/short USD on the other side. Here's my simple framework:

Trade GBP/USD when: The daily range has room to expand, there's a clear directional bias from London session, UK-specific news is driving movement, or EUR/GBP is trending (indicating GBP is the mover, not EUR).

Trade EUR/USD when: You want tighter spreads and smaller stops, the move is USD-driven rather than GBP-driven, Cable is choppy but EUR/USD is trending, or you want lower per-trade risk without reducing lot size.

Never trade both at full size simultaneously. If GBP/USD and EUR/USD are both setting up, choose the cleaner chart. If you insist on trading both, cut each position to 50% of your normal size.

Common GBP/USD Mistakes on Prop Accounts

Using EUR/USD stop distances on Cable. A 15-pip stop on EUR/USD makes sense during London session. On GBP/USD, a 15-pip stop gets clipped by normal volatility. Cable needs wider stops—25-40 pips is standard for intraday setups.

Trading Cable during Asian session. The pair is thin, the spread is wide, and the moves are noise. If you see a "perfect setup" on GBP/USD at 11 PM ET, it's probably a trap.

Ignoring GBP-specific news on funded accounts. EUR/USD traders can sometimes trade around US news events because the moves are more contained. BoE decisions on Cable can gap 100+ pips in seconds. Don't be anywhere near an open GBP/USD position during BoE announcements on your funded account.

Holding Cable overnight without checking swaps. With BoE and Fed rates both elevated, overnight swaps on GBP/USD can be significant—positive or negative depending on direction. Check your platform's swap rates before holding positions overnight. On a funded account where every dollar counts, a $15/night swap on a 1-lot position adds up over a week of holding.

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