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

UK Q2 GDP Overview

The UK docket sees the final Q2 2019 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 +0.5% in the second quarter of 2019. The annualized reading is expected to confirm the first readout of +1.2% in Q2.

Alongside the GDP release, markets will watch out for Britain’s Q2 Current Account and Total Business Investment data.

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 regain the 1.23 handle and beyond on upbeat GDP figures. On a disappointing GDP print, the GBP/USD pair could drop back below 1.2250 levels.

Technically, “the pair on Friday managed to find some support near the 50% Fibo. level of the 1.1959-1.2582 recent strong recovery move, which should now act as a key pivotal point for short-term traders. Below the mentioned support, around the 1.2270 region, the pair is likely to accelerate the slide further towards the 1.2240-35 intermediate support en-route 61.8% Fibo. level - near the 1.2200 round-figure mark. On the flip side, any meaningful recovery back above the 1.2300 handle now seems more likely to confront some fresh supply and remain capped near the 1.2335-40 confluence region – comprising of 38.2% Fibo. level and 200-period SMA on the 4-hourly chart.,” Haresh Menghani, Analysts at FXStreet, explains.

Key Notes

GBP/USD could slip back to the 1.2200 area – UOB

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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).