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GBP/USD binary signal - UK Revised GDP - 25 May 2018

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Signal details
Entry Price: 
1.3318
Close Price: 
1.3294
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
OTM
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The UK's Office for National Statistics (ONS) will be releasing its second revised GDP estimate today at 0830 GMT. The data covers the first quarter of 2018. In the preliminary GDP report, the ONS data showed that the UK's economy advanced at a pace of 0.1% on a quarterly basis.

On an annual basis, this brought the GDP to 1.2% as a result. This was one of the weakest pace of increase in the economy since the UK decided to leave the EU economic union in 2016.

The market's median estimates show that there will be no revisions made and the second estimates could point to a 0.1% increase on the quarter as stated in the preliminary GDP report.

However, in the recently concluded Bank of England monetary policy meeting, the BoE Governor, Mark Carney said that he expects the first quarter data to be revised higher. If actual data shows an upward revision, this could be a positive as investors continue to adjust their rate hike expectations from the Bank of England.

Besides the UK's GDP data, the Federal Reserve Chairman, Jerome Powell will also be speaking later in the day at 13:20 GMT. Powell is expected to speak at a conference in Stockholm. His comments will be closely watched especially if any references are made to the forward guidance and interest rate path.

Based on the above, today's binary trading signal is GBPUSD. The currency pair has been trading within the support zone of 1.3415 – 1.3318 region and price action is supported by the trend line serving as dynamic support.

Therefore, we are looking to purchase daily CALL options at 1.3318 for a 21:00 GMT expiry time. We expect to see GBPUSD initially pushing to the lower end of the range before closing higher on the day.

binary trading signal gbpusd 25 may 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.