British GDP rose by 0.2% in the first quarter of 2010, half the early expectations. GBP/USD reacts with a drop around the support line. Economists expected a rise of 0.4% in Britain’s GDP, exactly as in Q4 of 2009. This is the first release of GDP for this period, and it may be revised. In the previous quarter, a growth rate of 0.1% was initially reported, and it finally climbed to 0.4%. This was partially done on the back of a downwards revision of data for Q3. Will they do this trick once again? This was a very busy week in Britain. Inflation is picking up in Britain – consumer prices rose at an annual rate of 3.4%, higher than expected. While this isn’t too good for the economy, it puts the option of a British rate hike as a possible option. It isn’t a temporary rise in fuel prices but a more serious rise. This strengthened the Pound that pushed higher on this release. Employment figures were superb – another big drop in the number of unemployed people and also a revision of last month’s figures (the best since 1997) are definitely a good sign for the economy. As the elections are drawing close, this figure isn’t necessarily good, as it complicates the political situation. Retail sales didn’t follow the previous figures, and rose by only 0.4%, weaker than 0.7% that was predicted, although its important to note that last month’s figure was revised to the upside. GBP/USD After pushing higher, above 1.5350, the pair traded in a range from 1.5350, testing the support line and 1.5473. A downwards break of 1.5350 wasn’t confirmed. On the other hand, the 1.5520 line wasn’t approached. 1.5520 was last week’s high and also a support and resistance line in the past. With the disappointing GDP, a drop towards 1.5120, which proved to be a strong support line, can happen at any time. Want to see what other traders are doing in real accounts? Check out Currensee. It’s free. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading NewsOpinions share Read Next Forex Reads for the Weekend – April 24 2010 Yohay Elam 12 years British GDP rose by 0.2% in the first quarter of 2010, half the early expectations. GBP/USD reacts with a drop around the support line. Economists expected a rise of 0.4% in Britain's GDP, exactly as in Q4 of 2009. This is the first release of GDP for this period, and it may be revised. In the previous quarter, a growth rate of 0.1% was initially reported, and it finally climbed to 0.4%. This was partially done on the back of a downwards revision of data for Q3. Will they do this trick once again? This was a very busy week… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.