GBP/USD consolidation of BoE before Nonfarm Payrolls

FXStreet (Guatemala) - GBP/USD is currently trading at 1.5511 with a high of 1.5638 and a low of 1.5466.

GBP/USD is in consolidation of the downside post the sell-off on the back of a less hawkish than expected BoE day this Super Thursday. The price went from 1.56 through 1.55 in the space of an hour to print lows of 1.5465 before recovering almost a cent when supply capped the bounce and left the major to drift in a 30 pip range on the bottom of the 1.55 handle in to day's close for the US session.

Just one BoE official voted in favour of the bank starting to raise interest rates this month, in contrast to expectations in a Reuters poll that two would do be in favour of a hike.

The strength of the pound was said by Carney to be undoubtably creating downside pressure on the inflation. Timing of a rate hike would be data dependant and energy prices bear down on inflation until mid 2016.

We now await the Nonfarm Payrolls data tomorrow. The ADP jobs report arrived at 185k vs 215k. This could equate to Nonfarm Payrolls to be in the region of 215k vs a consensus of 225k.

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GBP/USD: downside exposed towards 200 DMA

Technically, the outlook is bearish again on this move bringing in the 200 day moving average in to sight at 1.5386 .1.5480 supports for now, ahead of 1.5450 and July lows of 1.5330. 1.5800 o the upside may relieve downside pressures in the medium term.

US stocks end lower ahead of US nonfarm payrolls

US stocks finished lower on Thursday, with the Dow posting its sixth fall in a row, with media companies leading the decline as investors await US nonfarm payrolls report.
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