On Friday we will get third-quarter GDP data out of the UK which is highly anticipated by traders. Expect the GBP to see an increase in volatility. Forecasts call for an increase of 0.8% quarter-on-quarter and a healthy 1.5% year-on-year.
Given the slew of economic disappointments from a couple of weeks ago I would not be surprised if the data comes in a bit softer than expected and the GBP to correct slightly. I would look to the next solid support levels and buy the dips especially in the GBPUSD. That’s just my take on it.
I agree with you and given the drop in the USD yesterday I took it as an opportunity to get my shorts in above 1.6200 for the GBPUSD. I think Friday’s GDP will come in softer than expected.
Thanks for sharing those thoughts! I’m trying to figure out how to trade this UK GDP event myself and I’m convinced that market expectations are higher than what’s actually listed as the consensus. Kind of similar to what we saw in Q2 when the actual figure came in line with expectations but traders were still disappointed.
The day of reckoning has come! What levels are you looking to enter later?
Looking between 1.6200 and 1.6220.
I think anywhere above 1.6200 is a good entry point.