UK Prelim GDP q/q 07/25/12 Spike Trade (+10~20 pips)

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4:30am (NY Time) UK GDP q/q Forecast -0.2% Previous -0.3%

Definition
Our focus will be on the GDP, is defined as the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time. GDP is the primary measure for the economy’s health, and a stronger GDP means that the central bank will more likely to raise interest rate.

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Update
GDP came out much worse than expected at -0.7%, the largest decline on record. We jumped in immediately on a spike trade to sell GBP/USD at 1.5490. We closed 50% of the trade on record for 20 pips of profit and moved the SL to break even. The market eventually stopped out the trade at BE, therefore yielding a total of +10 pips (while many traders closed at +20 pips of profit).

About Kelvin Ching

I'm a professional Forex trader and I have been trading for over 7 years. I was a series 3 broker and a registered CTA with the NFA, the main regulatory agency in the United States, and I have been involved at the highest levels in commodity trading. I also have a background in Information Technology, graphics design, and programming... I'm the co-founder of CurrencyNewsTrading.com, a site dedicated to fundamental analysis and news trading.

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