Trading the Litecoin price GBP is much different from trading any other pair in the market. In essence, LTC or Litecoin is a P2P blockchain-based crypto that was introduced in 2011. As a leading crypto, it is utilized for transferring of funds between businesses and individuals. GBP, on the other hand is UK’s fiat currency. In this article, learn more about Litecoin Price GBP currency pair and how to trade the LTC/GBP pair.
EVERYTHING YOU NEED TO KNOW ABOUT TRADING LITECOIN
As far as Litecoin is concerned, it is the seventh largest crypto in the world (if we take market capitalization into consideration). Given that a huge number of Litecoins have been circulated in the market, its price is way lower than that of Bitcoin. Thus, when it comes to trading Litecoin, it is important that traders pay heed to different opinions and analysis available from the cryptocurrency community. Additionally, traders must combine this with their own insights to determine whether trading Litecoin is the right option for them or not.
KEY POINTS ABOUT GBP CURRENCY
GBP, also referred to as Pound Sterling is one of the most sought-after fiat currencies in the world. It is the fourth widely traded fiat currency after USD, Yen and Euro. GBP is also an extremely stable currency. This is largely due to UK’s historically stable economic and political condition. Although, in the past couple of years, the GBP has witnessed some amount of uncertainty as well as volatility that further resulted in Brexit, following which UK left the EU. However, GBP’s value is impacted by UK’s economic strenghth as well as the monetary policies of the BoE (Bank of England). Thus, traders looking to trade the LTC/GBP pair must monitor the developments and news that impact both the currencies.
TRADING LITECOIN GBP
The factors that influence the price direction of cryptocurrencies are much different from the ones that impact the fiat currencies like GBP. Thus, it is important for traders looking to trade the Litecoin price GBP pair to not only understand but also assess these factors to be able to trade the pair profitably. Even though it is extremely different from Bitcoin, LTC’s price is heavily correlated to Bitcoin. Also, digital currencies like BTC and Litecoin are mostly impacted by public sentiment and outlook towards the adoption of cryptos in the future. This implies that any news and developments that impact the traction of cryptocurrencies, like regulation or improved chances of mainstreaming, drives the cryptos value, including that of LTC, up. The GBP’s relative value against other fiat currencies is influenced by the strength of the UK economy and the monetary policy of the Bank of England. This forms part of the complex matrix between the economies and monetary policy of the nations, with relative strength judged by financial market participants. The USD is the fiat currency that cryptocurrencies like Ether are priced against as a base exchange rate. This means that the GBP half of the ETH/GBP pairing is also influenced by the GBP/USD pairing. However, with GBP to USD daily volatility averaging 0.6%, around 10 times less than ETH/USD volatility, it is Ether’s price direction that comprehensively dominates the ETH/GBP pairing.
CRYPTOCURRENCY TECHNICAL ANALYSIS
Litecoin price GBP hit an intraday high at £137 on January 10, just below the £140 target objective mentioned in the previous analysis. The Litecoin price GBP pair formed a bearish engulfing pattern on January 10 and that was followed by aggressive selling on January 11, which pulled the price down to the 50-day SMA. Traders who may have missed buying previously bought the dip to the 50-day SMA, resulting in a strong recovery. If the bulls can push and sustain the price back above the 20-day EMA, it will suggest that traders continue to buy at higher levels. If that happens, the pair may gradually move up to £120 and then to £140. However, the possibility of the uptrend resuming is low. Contrary to this assumption, if the Litecoin price GBP turns down from the 20-day EMA, it will suggest that traders are selling at higher levels. This may keep the pair range-bound between the moving averages for a few days. A break below the 50-day SMA could tilt the advantage in favour of the bears. We do not find any trade setups at the current levels, hence traders may remain on the sidelines.