When you’re transferring one currency for another, the two currencies you’re dealing with form a currency pair. For instance, your pound to US dollar (GBP/USD) currency pair may be trading at 1.60, which simply means, for every £1 you trade, you’ll receive $1.60.On larger sums the exchange rate can be more noticeable; if you were buying a house in the USA and had £300,000 to spend, with a GBP/USD exchange rate of 1.60 you’d expect to have around $480,000 in your budget.