Cable gets its name from the undersea cables that used to carry bid and ask quotes across the Atlantic ocean, a reference to the pair’s venerable past. Before the US dollar took over, sterling was used as the world’s reserve currency.
GBP/USD and EUR/USD share many similarities. Firstly, although the UK has never been part of the euro, its economic strength is still hugely tied to the European Union. And secondly, unlike with USD/CHF and USD/JPY, the dollar acts as the quote currency in both cable and eurodollar. That means that both pairs can often rise when the dollar is weak, and fall when it is strong.
Like all forex pairs, the policies of the central banks with oversight over the two currencies in GBP/USD – in this case the Bank of England and Federal Reserve – will have a major bearing on its price.