When is the UK GDP and how could it affect GBP/USD?

UK Q2 GDP Overview

The UK docket sees the first revision to the Q2 2018 GDP, which will be published later this session at 0830 GMT. The second estimate of the United Kingdom GDP growth is expected to arrive at 0.4% in the second quarter of 2018. The annualized reading is expected to confirm the first readout of 1.3% in Q2.

Deviation impact on GBP/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 40 pips in deviations up to 2.5 to -2.5, although in some cases, if notable enough, a deviation can fuel movements of up to 70 pips.

 How could affect GBP/USD?

The spot could extend the bearish bias on a downside surprise in the GDP figures and test the 1.3050 support zone. On a better GDP print, the GBP/USD pair could attempt to regain the 1.31 handle.

Technically, “the pair has managed to hold its neck above the 1.3055-50 support area, representing 38.2% Fibonacci retracement level of the 1.2662-1.3298 recent upsurge. A convincing break below the mentioned support will mark the end of recent corrective bounce and turn the pair vulnerable to head towards testing sub-1.3000 level, a support coinciding with 50% Fibonacci retracement level. On the flip side, momentum back above the 1.3100 handle now seems to confront stiff resistance near the 1.3140-50 confluence region, comprising of 100-day SMA and 23.6% Fibonacci retracement level, above which the pair is likely to make a fresh attempt towards reclaiming the 1.3200 handle,” Haresh Menghani, Analysts at FXStreet, writes.

Key Notes

GBP/USD back below 1.31 ahead of the UK's GDP reading

Market themes of the Day: USD looks strong in a busy end to Q3

About the UK GDP

The Gross Domestic Product released by the Office for National Statistics (ONS) is a measure of the total value of all goods and services produced by the UK. The GDP is considered as a broad measure of the UK economic activity. Generally speaking, a rising trend has a positive effect on the GBP, while a falling trend is seen as negative (or bearish).