U.K. GDP Results
Today U.K. has scheduled to release various fundamental indicators at the same time at 0600 GMT/1130 IST. They are U.K.’s GDP data, goods trade balance, industrial production as well as manufacturing production results. As all the indicators are releasing at the same time, GBP may face volatility in case of mixed data release.
GDP data is the broadest measure of economic activity and the primary gauge of the economy’s health while export demand also impacts production and prices at domestic manufacturers. Industrial and manufacturing production are a leading indicators of economic health – production reacts quickly to ups and downs in the business cycle and is correlated with consumer conditions such as employment levels and earnings.
Let’s see how GBP has reacted during the previous data release:
GBP/USD: The pound trades almost flat ahead of U.K.’s GDP results. The pair made intraday high at $1.3756 and low at $1.3729 mark. A day chart with triple EMA confirms slightly bearish trend while H1 chart suggests slightly bullish trend in short run. A sustained close above $1.3755 on H1 chart requires for the upside rally. Alternatively, a sustained close below $1.3701 will check further supports.
Key Resistances: $1.3755, $1.3789, $1.3840, $1.3862, $1.3900
Key Supports: $1.3701, $1.3665, $1.3622, $1.3585, $1.3540
Take a look and do trade wisely!