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GBP/USD binary signal - UK Revised GDP - 22 Feb 2018

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Signal details
Entry Price: 
1.3921
Close Price: 
1.3949
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
ITM
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The UK's Office for National Statistics (ONS) will be releasing the second revised gross domestic product (GDP) estimates today at 09:30 GMT. According to the economists polled, the UK's GDP is expected to remain unchanged at 0.5% during the three months ending December 2017.

On a year over year basis, the UK's GDP is expected to remain steady at 1.5%. An unchanged print on the fourth quarter GDP would show that the UK's economy remained resilient despite the uncertainty from the Brexit talks. However, a lower revised GDP could potentially put pressure on the GBP's exchange rate and could also dent the plans for the BoE's proposed rate hike in the coming months.

While the headline figures are expected to remain unchanged, business investment for the quarter is expected to be a tad lower at 0.4%, down from the first estimates that showed a print of 0.5% increase during the quarter. Still, on a yearly basis, business investment is expected to rise 2.3%, up from 1.7% from the first estimates.

The GDP data comes after yesterday, the labor market data showed that the UK's unemployment rate rose for the first time in a decade. However, despite the weak headline figures, wage growth was seen to be stable which managed to offset the increase in the unemployment rate.

Based on the above, today's binary signal is GBPUSD. The currency pair had weakened on the back of the unemployment report. However, the U.S. dollar managed to strengthen on the back of the FOMC meeting minutes.

GBPUSD was seen falling to the support level at 1.3902 and we expect to see price posting a modest rebound in the near term. Therefore, we would purchase daily CALL options at 1.3921 for a 21:00 GMT expiry time. We expect GBPUSD to consolidate near the current support level to close higher on the day.

binary signal gbpusd 22 feb 2018

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.