Forex: GBP/USD presses higher on US session with BoE tomorrow

FXstreet.com (Barcelona) - Ahead of the ADP employment data in the US, the GBP/USD began its quest towards further upside, breaching above 1.5120 and climbing to 1.5140 zone. The jobs report was expected to rise from 198K to 200K in March, but February data was revised much higher, to 237K, and the March figure disappointed at 158K. The US ISM non-manufacturing PMI is next, with a slight drop from 56.0 to 55.8 expected. Now, ahead of the US ISM non-manufacturing PMI (expected slight drop from 56.0 to 55.8), the pair is extending gains.

Investors await the BoE policy announcement scheduled for tomorrow. “Not enough growth” is what TD Securities point as the superficial problem in the UK with no doubt, but the BoE is conflicted as to what the underlying afflictions are, as well as what the potential remedies would be. “The plan continues to be targeting pockets of weakness as best as possible”, wrote analyst Richard Kelly, adding that downside data surprises through Q1 increase the risk of BoE action, but they continue to demand more justification before providing broad stimulus like QE. “If the economy continues to muddle through, May or August do become potential dates for further easing, but the form is wide open”, he added.

“Yesterday's slide after the unsuccessful test of 1.5260 has bottomed at 1.5075 and current intraday outlook is already bullish, for a rise through 1.5165, en route to 1.5260 high”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to initial minor support at 1.5087.