/When are the UK GDP/ Current account data and how could they affect GBP/USD? | by Author: Dhwani Mehta | FXStreet

When are the UK GDP/ Current account data and how could they affect GBP/USD? | by Author: Dhwani Mehta | FXStreet

The UK final Q4 GDP/ Current account Overview The UK docket has the final Q4 GDP report, alongside the current account data, both of which will be published later this session at 0830 GMT. The third estimate of the United Kingdom GDP is expected to remain steady at 0.4% in the fourth quarter, same as that seen in the previous readout. The annualized reading is also expected to show that the pace of expansion slowed down to 1.4% in Q4 versus 1.5% seen in the previous quarter. Meanwhile, the UK current account deficit is expected to expand by GBP -24.00 billion in the fourth quarter versus a GBP -22.78 billion figure seen previously. 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 GBP/USD ’s reaction to the UK releases is expected to be short-lived, as the spot will remain at the mercy of the broader markets sentiment amid pre-holiday light trading. “From a technical perspective, a follow-through weakness below the short-term ascending trend-channel support, currently near the 1.4060-55 region, would mark a bearish breakdown and accelerate the downfall towards testing the key 1.40 psychological mark. The corrective slide could further get extended towards the 1.3900 handle with some intermediate support near the 1.3960-40 region. Alternatively, a sustained move back above the 1.4100 handle, leading to a subsequent breakthrough 1.4140 supply zone, would negate any bearish bias and prompt some fresh short-covering move back beyond the 1.4200 handle towards retesting the 1.4230 hurdle,” Haresh Menghani, Analyst at FXStreet notes. Key Notes German inflation and UK GDP amongst market movers today – Danske Bank How to trade the UK GDP with GBP/USD About the UK final 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).