On Wednesday, the 10th of October, the event calendar is busy with important data releases. Market participants should focus on the UK data release: GDP, Industrial Production, Manufacturing Production and Visible Trade Balance. The other important data will be released from the US in form of PPI and PPI Core figures. There are spechees scheduled for today from MPC Member Andy Haldane and FOMC Member Charles Evans.
GBP/USD analysis for 10/10/2018:
The Gross Domestic Product is a comprehensive measure of an overall production and consumption of goods and services. GDP serves as one of the primary measures of overall economic well-being. While GDP announcements generally conform to expectations, unanticipated changes in this metric can move markets.
Robust GDP growth signals a heightened level of economic activity and often a higher demand for the domestic currency. At the same time, economic expansion raises concerns about inflationary pressures which may lead monetary authorities to increase interest rates. Thus better than expected GDP figures are generally bullish for the Euro, while negative readings are generally bearish.
Let's now take a look at the GBP/USD technical picture at the H4 time frame. The market has broken above the 61% Fibo retracement and currently, is heading towards the level of 1.3191, which is a part of the technical resistance zone situated between the levels of 1.3191-1.3217. The nearest technical support is seen at the level of 1.3132. The move up was made on strong and positive momentum, so there is a chance for a breakout higher if the today's UK data will beat the expectations. The target above the resistance zone is seen at the level of 1.3292.