GBP/USD is a currency pair that represents the exchange rate between the British Pound Sterling and the United States Dollar. It indicates how many U.S. dollars are needed to purchase one British Pound. Traders and investors closely monitor this pair to gauge the economic health of the United Kingdom and the United States. The value of GBP/USD fluctuates based on various factors, including interest rates, economic data, and geopolitical events. Changes in monetary policy by the Bank of England or the Federal Reserve can significantly impact the exchange rate, making it a popular choice for forex trading.