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GBP/USD trading signal - UK Final Revised GDP - 29 Jun 2018

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Signal details
Entry Price: 
1.3100
Close Price: 
1.3203
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
ITM
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The UK's Office for National Statistics (ONS) is expected to release its final revised GDP for the first quarter at 0930 GMT. According to the economists polled, the final revised GDP is expected to remain unchanged at 0.1% as previously estimated.

The first quarter GDP revision is unlikely to move the markets much in the near term. However, a surprise decline in the GDP number could no doubt bring some volatility to the markets.

The UK's economy has increased at one of the slowest pace seen in recent years and was the worst pace of increase among the G7 economies. At the recently held monetary policy meeting, officials remained optimistic that the first quarter bleak patch of data was only temporary.

Investment in the UK eased sharply due to the Brexit uncertainty. Furthermore, higher inflation had kept household spending in check as wage growth remained weak. Temporary factors such as the cold weather were among other things attributed to the weak GDP growth.

This is expected to change in the second quarter report. However, questions still remain at the pace of increase that the UK might have witnessed in the second quarter. The net lending to individuals is also expected to show no changes after posting flat growth during the quarter.

Today's trading signal is GBPUSD, the pound was seen posting strong declines but following a rebound off the support level at 1.3060, the currency pair could be extending the gains to the upside. The rebound off the support level could signal that the GBPUSD will be closing higher on the day.

gbpusd trading signal 29 jun 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.