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

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.

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).