GBP/USD: awaits BoE and nonfarm payrolls

 GBP/USD has been consolidating for the best part of the US session having dropped from 1.3359 to lows of 1.3279.

We are of course awaiting key events in the BoE tomorrow and the nonfarm payrolls on Friday in the US session for the US jobs markets. Today came with an ADP report as a potential prelude for the Friday's jobs data that offers a solid foundation for a healthy report in respect to the headline. Equally, the US ISM services data was also solid, despite a miss of expectations. The dollar is stronger on the back of those releases. 

In the UK, the Markit services PMI for July contracted as expected, by 47.4.  The BoE is largely expected to cut rates by 25bps to new record lows of 0.25%. "It's still unclear, however, if Governor Carney will dare to announce more bold measures, or leave doors open for additional stimulus," explained Valeria Bednarik, chief analyst at FXStreet. "He may even announce that the MPC needs more data before making a decision."

GBP/USD levels

Spot is presently trading at 1.3314, and next resistance can be seen at 1.3323 (Hourly 20 EMA), 1.3339 (Weekly Classic R1), 1.3356 (Monthly High), 1.3356 (Weekly High) and 1.3357 (Daily Open). Next support to the downside can be found at 1.3298 (Daily Classic PP), 1.3281 (Daily Low), 1.3276 (Daily 20 SMA), 1.3238 (Hourly 100 SMA) and 1.3229 (Daily Classic S1). Regarding candlestick formations, we can see Doji formation on the 1-hour and a Dark Cloud Cover and Hammer formation on the 4-hour chart.