The Fundamental FOREX Blog

Tomorrow, Tuesday 01-26-10 at 4:30 AM ET, the GBP – Prelim Gross Domestic Product QoQ will be released.

This report will be released with two other economic news report.

GBP – Mortgage Approvals
GBP – Index of Services 3m/3m

This is my first post of this report – the last time that there was enough difference between the “forecast” and the “actual” was on Friday, 10-23-09 at 4:30 AM ET. Hopefully this month will be good enough as well.

This post will show what happened in October.

This report is released by the U.K.s National Statistics on a monthly basis.

And British Bankers Association

For an idea how this report works, here is what happened last month:

GBP – Prelim Gross Domestic Product stats:

previous = -0.6%

forecast = 0.1% revised = 0.2%

Actual = -0.4%

Here is how I was set up and what happened:

GBP-2-30AM-10-23-09
Looking for a 0.2% difference
Actual > Forecast = Good for GBP
GBP Gross Domestic Product (QoQ-P)
——actual———-forecast———-previous
________________0.1%________-0.6%
____-0.4%_______0.2%_________-0.6%
out at 0.3% or higher – BUY GBP/USD
out at -0.9% or lower – SELL GBP/USD
Bad – “actual” came out lower then “forecast” by 0.5%
Bad – “actual” came out lower then revised “forecast” by 0.6%
Good – “actual” came out higher then “previous” by 0.2%

Here are the charts:

a one minute EUR/GBP currency chart

This EUR/GBP currency pair spiked up 1st minute about 68 PIPS – right direction
Moved up next 47 minutes about 50 PIPS – right direction

a one minute EUR/JPY currency chart

This EUR/JPY currency pair ranged!!.

a one minute EUR/USD currency chart

The EUR/USD currency pair Spiked up 1st minute about 20 PIPS
Ranged next 19 minutes!!

a one minute GBP/CHF currency chart

This GBP/CHF currency pair spiked down 1st minute about 120 PIPS – right direction
Moved down next 56 minutes about 90 PIPS – right direction

a one minute GBP/JPY currency chart

This GBP/JPY currency pair spiked down 1st minute about 120 PIPS
Ranged for 10 minutes
Moved down next 30 minutes about 90 PIPS

a one minute GBP/USD currency chart

This GBP/USD currency pair spiked down 1st minute about 105 PIPS – right direction
Ranged for 10 minutes
Moved down next 25 minutes about 90 PIPS – right direction
Small winning trade!

Here is what is happening for tomorrows report:

GBP Gross Domestic Product (QoQ-P) stats:

previous = -0.2%

forecast = 0.4%

The “forecast” for this report shows a possibility of a up turn of the GBP economy.
Here is how I am set up for tomorrow:

GBP-2-30AM-01-26-10
Looking for a 0.2% difference
Actual > Forecast = Good for GBP
GBP Gross Domestic Product (QoQ-P)
——actual———-forecast———-previous
________________0.4%________-0.2%
out at 0.6% or higher – BUY GBP/USD
out at 0.2% or lower – SELL GBP/USD

I will be watching the currency pair GBP/USD – if there is a full difference of 0.2% from the “forecast”, I may enter a trade.

I did post a “follow up” of this report soon after, click here to see what happened.

The next scheduled release of these reports is on Friday, 02-23-10 at 4:30 AM ET.

I will probably post a “preview” a day or two prior.

Stay tuned!