wxs1986

Ignore domestic investor concept altogether. It's a bad way of explaining this. Also ignore direct/indirect...another bad way of explaining this.

USD:GBP 2.20 means GBP 2.20/USD, which means you can buy one U.S. dollar by paying GBP 2.20, or with GBP 2.20 you can buy $1. It doesn't matter who you are or where you live.

If that changes to USD:GBP 2.40, then GBP 2.40/USD and the dollar costs more now. You have to pay GBP 2.40 to get $1.

What if I want to buy GBP? Flip the quote to see the price of 1 GBP.

GBP 2.20/USD = $0.4545/GBP. So, one GBP will cost you $0.4545, or with $0.4545 you can get GBP 1.00.