GBP/USD flat-lined above 1.2500 ahead of PMI, NFP

The GBP/USD pair traded around a flat-line almost through the Asian session, and now extends its side-trend into early Europe, as dust settles over the BOE aftermath and markets await the UK services PMI release for fresh impetus on the pound.

The major witnessed almost 180-pips sell-off on Thursday, after the BOE policy stance turned out on the neutral-side. Further, the selling pressure accelerated after the central bank made downward revisions to the longer-term inflation forecasts.

Looking ahead, with the BOE now behind, the next relevant economics news for the spot remains the UK services PMI data, which is expected to arrive 55.8 in Jan versus 56.2 last. However, the main risk event for today remains the US NFP report, which is expected to influence USD significantly, eventually impacting GBP/USD.

US NFP: Expect a positive employment report for January – Nomura

GBP/USD Levels to consider            

At 1.2517, the upside barriers are lined up at 1.2554 (5-DMA), 1.2586 (daily R1) and 1.2600 (round number). While supports are aligned at 1.2500 (key support) and 1.2457 (daily S1) and below that at 1.2420 (20-DMA).