The GBP index is an index or measurement which tracks the British pound sterling’s status against its major currency rivals. GBP usually refers to the ISO 4217 currency code, and the abbreviation for the British pound sterling, the official currency of the United Kingdom. The British pound sterling is considered as one of the highest trading volumes globally, sprawling only the greenback or the United States dollar, the Euro, and the Japanese yen in daily volume.
In addition, The British pound sterling accounts for about 13% of the daily trading volume in the forex market. The most common currencies that trade in terms of the British pound sterling are the euro, labeled as EUR/GBP by the market and the greenback—or the United State dollar, which is labeled as GBP/USD. Forex traders who often check the GBP index usually refer the GBP/USD to as a cable.
Cable on the other hand is a term that refers to the exchange rate between the greenback and the British pound. In the GBP index it can also be used to refer simply the United Kingdom’s official currency, this term (cable) only applies to the British pound sterling with reference to prices and trading against the dollar.
As the official currency of the United Kingdom is mostly known as the British Pound Sterling, the GBP index which measures and tracks the pound’s status against its major currencies, often refers to the British pound as GBP which is an abbreviation that stands for Great Britain Pound.