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

The UK Second Estimate Q3 GDP Overview

The UK docket has the second readout of Q3 GDP report, which will be published later this session at 9.30GMT. The second estimate of the United Kingdom GDP is expected to hold steady 0.4% in the third quarter, same as that seen in the preliminary reading. The annualized reading is also expected to remain unchanged at 1.5% in Q3.

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 take a beating on a softer GDP print and drop below 1.33 handle. On an upside surprise, the GBP/USD pair is likely to resume its recent bullish momentum in a bid to regain 1.3350 barrier.

Technically, “The momentum indicators appear to be picking up some mildly positive impetus and further gains do seem possible, where a break of 1.3340 would allow a run to 1.3400+, possibly to where the major descending trend resistance from the 2014 high comes in at 1.3460. On the downside, minor support will now be seen 1.3280/00 ahead of 1.3240 and buying dips would currently seem to be the plan,” Jim Langlands at FX Charts explains.

Key Notes

UK GDP Figures Eyed as Growth Forecasts Take a Hit

GBP/USD Forecast: now eyeing a fresh bullish breakout, focus shifts to UK GDP

About the UK Second Estimate 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).