GBP/USD: Trading the British Preliminary GDP Apr 2014


British Preliminary GDP is a measurement of the production and growth of the economy and analysts consider GDP one the most important indicators of economic activity. A reading which is better than the market forecast is bullish for the British pound.

Here are all the details, and 5 possible outcomes for GBP/USD.

Published on Tuesday at 8:30 GMT.

Indicator Background

GDP is released quarterly, magnifying the impact of each release. GDP is one of the key economic indicators and provides an excellent indication of the health and direction of the economy. Traders should treat the indicator as a market-mover which can have a significant impact on the movement of GBP/USD.

GDP edged lower in Q4, posting a gain of 0.7%, which matched the forecast. The markets are expecting a stronger reading in Q1, with the estimate standing at 0.9%. Will the indicator meet or beat this rosy prediction?

Sentiments and levels

The pound has been showing little movement since mid-April, content to hug the 1.68 line. Will GBP/USD finally break out? Much will depend on the GBP and PMI releases. In the US, we’ve seen some mixed numbers, but the Fed is expected to implement another QE taper later in the week, which could help the US dollar. Much will depend on the all-important NFPs late in the week. Thus, the overall sentiment is neutral on GBP/USD towards this release.

Technical levels, from top to bottom: 1.7375, 1.7180, 16990, 1.6823, 1.6705 and 1.66.

5 Scenarios

  1. Within expectations: 0.6% to 1.2%. In such a scenario, GBP/USD is likely to rise within range, with a small chance of breaking higher.
  2. Above expectations: 1.3% to 1.6%: An unexpected strong reading could send the pair above one resistance line.
  3. Well above expectations: Above 1.6%: Such an outcome would push GBP/USD  upwards, and a second resistance level might be broken as a result.
  4. Below expectations: 0.2% to 0.5%:  A weak GDP reading could cause the pair to drop and break one support level.
  5. Well below expectations: Below 0.2%. If the indicator posts a weak gain or contracts, GBP/USD will likely drop and could break through a second support level.

For more on the pound, see the GBP/USD forecast.

To follow this event live: 

Powered by Get the 5 most predictable currency pairs

About Author

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.


  1. boutique dresses london on

    Much of his work had to do with photography male models,
    oftentimes focuses on the face and less on the outfits. However, fortunately, the Irish vocalist was eventually allowed to join the party until the manager of the
    Funky, who could identify the star, was summoned. Several offer you free shipping according to what is the
    monetary value of expended. You could start to
    a Hermes, Delvaux or Balenciaga a luxury bags with
    impeccable sophisticated reputations Generally if the difficulty in getting among the new
    Beckham or Olsen bags is any suggestion, the solution the first question may perhaps be Colin
    Mc – Donald, a pro stylist within New York, is attempting to find on the list of Olsen
    Row backpacks on the part of complaintant who is responsible for,
    he explained, marrying into very prominent and affluent Russian famil in Chicago.
    Nonetheless, I’ve tried to create a list of the top ten photographers, of all times, who have
    made great contributions to the world of photography.

    If you would like to learn more go to Fashion Design advice
    and at 80s Fashion tips. Let’s look at some suggestions designed
    to help you get a foot ‘ or should I say a lens ‘ into the door of these fascinating photographic genres.
    Melissa Rodwell’s personal gallery becomes a valuable inspiration when you read it in conjunction with FP Blog as you learn how she has come to set up such
    powerful shots. Although the collection is inspired from the cheongsam, still
    the designer retains the uniqueness of the collection through avoiding the
    overused features. Kourtney Kardashian is a well-known
    celebrity fashion guru.

  2. bandage dress on

    The bandage dress starts off light grey at the bust area leading down to a dark
    grey hue of the flared a-line skirt. The gown from the road by Herve Leger dress
    a large and exciting choice too. These biographies
    of famous photographers of the clothing world provide an in-depth look into what it takes to
    get started in the world of fashion. Even so, all these qualities make Wonderbra final Strapless bra to be able
    to withstand any condition. Why not treat yourself to a stunning, yet very sexy and sophisticated dress.
    Herve Leger of clothing everywhere are close to the body of the cutting, carving out
    the perfect female body shape, and thus the image to be “bandage dress” name.

    Treat your ties with a specialized fabric protection spray before wearing them.
    When you’re going on a trip to polish your skills with a rifle, don’t forget
    to wear shooting socks. Although there are lots of different
    designs of Grecian covered dress, the one that has remained
    well liked and is essentially the most flattering would be
    the one shouldered Grecian draped dress. You also
    need in the direction of consider the fabric quality of
    your ivory outfits.