The Gross Domestic Product (GDP) indicator measures the production and growth of the economy. Analysts consider GDP one of the most important economic indicators, thus the publication of the British GDP can have an immediate effect on GBP/USD. Here are all the details, and 5 possible outcomes for GBP/USD. Published on Wednesday at 9:30 GMT. Indicator Background British GDP figures are released on a quarterly basis, making the GDP indicator a very important one. The indicator provides analysts and traders with a snapshot of economic activity and the health of the economy. GDP increased last month by 0.5%, slightly better than the market forecast. However, the markets are calling for a contraction of 0.1%, which would be the first negative reading since last January. Will the indicator prove the markets wrong, and stay in positive territory this month? Sentiments and levels UK economic indicators remained steady last week, and the pound rallied against the US dollar. If traders feel that no bad economic news is good news, the pound could continue to roll. Thus, the overall sentiment is bullish on GBP/USD towards this release. Technical levels, from top to bottom: 1.5815, 1.57, 1.5629, 1.55, 1.54, 1.5360 and 1.5280. 5 Scenarios Within expectations: -0.4% to 0.2%: In this scenario, GBP/USD could show some slight fluctuation, but it is likely to remain within range, without breaking any levels. Above expectations: 0.3% to 0.6%: A reading above expectations would be an indication of growth in the UK economy, and could push the pair above one resistance level. Well above expectations: Above 0.6%: An unexpectedly sharp rise in GDP could propel GBP/USD upwards, and two or more resistance lines could fall. Below expectations: -0.8% to -0.5%: A reading well into negative territory could push GBP/USD upwards, with one support level at risk. Well below expectations: Below -0.8%: A poor GDP reading would hurt the pound, and the pair could break two support levels or more. For more on the pound, see the GBP/USD forecast. Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher Opinions share Read Next Forex Daily Outlook January 24 2012 Anat Dror 11 years The Gross Domestic Product (GDP) indicator measures the production and growth of the economy. Analysts consider GDP one of the most important economic indicators, thus the publication of the British GDP can have an immediate effect on GBP/USD. Here are all the details, and 5 possible outcomes for GBP/USD. Published on Wednesday at 9:30 GMT. Indicator Background British GDP figures are released on a quarterly basis, making the GDP indicator a very important one. The indicator provides analysts and traders with a snapshot of economic activity and the health of the economy. GDP increased last month by 0.5%, slightly better… 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.
