GBP/USD freezing in place ahead of US Non-Farm Payrolls
- Sterling is hitting into major lows off the 200-day SMA; souring economic data has hobbled the BoE.
- A bounce is expected in the US NFP figures due later.
The GBP/USD is trading in a tight cycle ahead of the European market session, after ending Thursday flat on the day.
GBP/USD: Bears take a breather ahead of US payrolls
Traders have recoiled ahead of Friday's US session that drops the US Non-Farm Payrolls report at 12:30 GMT, and the Sterling can rest easy beforehand with little data scheduled for the GBP ahead of the NFP.
The GBP plummeted against the US Dollar for eleven of the last twelve trading days, with the broader market's sudden Dollar-favour timing well with a minor conniption in the UK's recent economic data, with the Bank of England suddenly faced with an intense slowdown in the British economy, and the BoE's highly-expected May rate hike is looking set to be pushed down the road, taking the Sterling off of a highly bullish position into five-month lows.
Nonfarm Payroll preview: employment data not expected to impress
GBP/USD Levels to consider
FXStreet's Valeria Bednarik, outlining how the Sterling's Friday chances of an end-of-week rally are looking slim: ""In the 4 hours chart, a bearish 20 SMA caps the upside, now around 1.3645, while technical indicators recovered from oversold readings and head higher, but the RSI currently at 34, far from indicating renewed demand for the Pound but barely reflecting the latest correction. This Friday is all about Payrolls, yet even if US data disappoints, chances of a Sterling strong recovery remain well limited."