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 Forex Analysis
28

Forex News Spike Trading Signal for June 28th 2011


0430 UK GDP q/q prelim (+0.5% expected,+0.5% prior, +0.4% to +0.6% range)

Affliated Reports:
UK GDP y/y final (1.8% expected, 1.8% prior, 1.7% to 1.8% range)

This is the final release of Q1 2011 GDP. Usually this is the release least likely
to deviate out of all 3 (Preliminary, Revised & Final). In March was the last
Final GDP release and there was a +0.1 deviation. Price dropped into the news
(likely due to some sort of rumor) and bounced back up starting a few minutes
after the release. Definately not a typical news reaction, but this was only
a small deviation. A -0.1 in December 2010 only caused a brief 10 pip dip and
then moved higher. The last time there was a deviation of more than +/-0.1
was back in June 2009 where a -0.3 moved cable down about 40 pips.

It it comes out at +0.7% or higher, GBP/USD should rally 40 pips.
If it comes out at +0.3% or lower, GBP/USD should drop 40 pips.

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Categories: GBPUSD

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