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GBP/USD binary signal - Quarterly GDP - 24 Aug 2017

Signal details
Entry Price: 
1.2845
Close Price: 
No trade
Direction: 
Low
Expiry Time: 
20:00 GMT
How we trade
4.2/5 of 5 ratings

The UK's Office for National Statistics will be releasing the second quarter GDP estimates today at 08:30 GMT. This will be the second revised estimate for the quarter ending June. According to the economists polled, the UK's gross domestic product is expected to remained unchanged at 0.3% on the quarter. Besides the GDP report, the index of services is also coming up simultanesouly. Estimates are slightly bullish with expectations of a 0.5% increase.

In the first estimate of the Q2 GDP, the UK economy expanded at a pace of 0.3% on the quarter. The index of services rose 0.4%. This was a very soft increase and was widely expected. The UK's economy is expected to slowdown following the decision to leave the EU.

On a year over year basis, the UK's economy was seen rising at a rate of 1.7%. Overall, the second quarter GDP data was a slight improvement from the previous quarter. In the first quarter ending March 2017, the UK's economy expanded just 0.2% on a quarterly basis. This was a significant drop from the 0.7% GDP growth that the nation experienced in the period ending December 2016.

In the first quarter, the UK's economy was seen rising 2% but since then it has slowed to 1.7%. Today's GDP data is likely to put a dent on the British pound if there is further evidence of weakness in the economy. Business investment which has become a concern is expected to weaken even further.

Based on the above today's trade recommendation is GBPUSD. The currency pair has been weakening for the past two days mostly on account of the Brexit preparations. Having breached the support level of 1.2847, we expect further weakness in the currency pair.

Therefore, we purchase daily PUT options at 1.2845 for a 20:00 GMT expiry time. Following a modest retracement back to the resistance level at 1.2845, we expect the GBPUSD to close lower on the day.

binary options signal gbpusd 24 Aug 2017

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.