The pound is affected by external and internal factors. Internal factors include, for example, macroeconomic factors such as unemployment, inflation, GDP, and trade surpluses. External factors are economic relations with the United States and Europe, that is, the deterioration or improvement in the economic condition of the UK partners affects the pound itself
. The base currency is GBP, the British pound, and the quoted currency is USD, the American dollar. The appreciation of the currency pair means the strengthening of the British pound against the US dollar, that is, more than USD is required to buy one GBP. The depreciation indicates the strengthening of the American dollar