Pound Sterling Price News and Forecast: GBP/USD on the back foot near 1.3900 mark ahead of NFP

GBP/USD Forecast: Bailey bails sterling out, Nonfarm Payrolls may test critical support

Tip-toeing toward tightening – the Bank of England has indicated it is ready to "modestly" change its monetary policy, and that has eventually proved to be positive for the pound. A bigger test is due now.

The BOE left its policy unchanged and only one member – Michael Saunders – voted for an imminent tapering of its bond-buying scheme. That initially sent sterling lower as some had expected the bank's Dave Ramsden to join him. Read more...

GBP/USD Price Analysis: On the back foot near 1.3900 mark ahead of NFP

The GBP/USD pair edged lower on the last day of the week and was last seen hovering near the lower end of its daily trading range, just above the 1.3900 mark.

From a technical perspective, the overnight post-BoE rebound from the 1.3870 support zone stalled near a one-week-old descending trend-line resistance, forming a descending triangle on hourly charts. Adding to this, the recent failures ahead of the key 1.4000 psychological mark constituted the formation of a double-top on the daily chart. Read more...

GBP/USD: Robust NFP figures to send cable below critical support at 1.3875

GBP/USD has weathered dollar strength after the Bank of England (BoE) took a hawkish step. A bigger test is due now. Will Nonfarm Payrolls outweigh the pound's resilience or not? The answer will be known soon enough, Yohay Elam, an analyst at FXStreet, briefs.

“The labor market is now in focus as the US releases its Nonfarm Payrolls report for July. Economists expect an increase of 870,000 positions, but estimates vary widely, partly a result of mixed leading indicators. Apart from the headline number, investors will also be watching Average Earnings. Any increase in wages implies higher inflation down the road and a growing chance of tapering.”  Read more...