- GBP/USD picks up bids inside a wide 80-pip move after BOE Super Thursday.
- Britain calls back patrol boats from Jersey but keeps them standby.
- Polling in England, Wales and Scotland ends the key day with final results expected around late weekend.
- All eyes on the US employment report for April.
GBP/USD stays firm around 1.3900 after a wild Thursday that summed up trading on a negative side. In doing so, the cable pair benefits from the latest Brexit-positive news while waiting for the fresh clues ahead of the US Nonfarm Payrolls (NFP) and recent election results.
The Bank of England’s (BOE) revised up the UK’s growth forecasts for 2021 while expecting a pullback in GDP during 2022. The “Old Lady” also sees 2021 inflation averaging 2.5% during the previous day’s announcements. However, major attention was given to the adjustments of the weekly bond purchase, despite keeping the overall sum intact, which triggered speculations of long-term tapering and tighter monetary policy going forward.
Also challenging the GBP/USD traders were elections in England, Wales and Scotland. At the end of the day, polls suggest Nicola Sturgeon keep the reins of Scotland and may gain the planned majority, which in turn could recall voting on the Scottish Referendum. Inside the UK, Wales and Scotland may favor Labors but Conservatives are known for surprising the nation and has PM Boris Johnson’s back-up. The final results may be out by this weekend or early next week,
Elsewhere, Britain called back its patrol boats from Jersey but will keep it near the sands amid fears of French blockade. The UK sent Royal Navy vessels into the waters after France signaled to block the area amid rage over fishing rights.
On the coronavirus (COVID-19) front, the UK marked 2,613 covid cases, versus 2,144 prior, coupled with 13 virus-led deaths against 27 previous fatalities, on Thursday.
After the US and European Union’s (EU) support to waive the covid vaccine IP rights, the UK government spokesperson said, per Reuters, “Britain is discussing ways of increasing production and supply of COVID-19 vaccines with the United States and World Trade Organization (WTO).”
While the BOE propelled FTSE 100 to 14-mont high, the risk-on mood saved the day for the GBP/USD prices despite marking a negative closing on Thursday.
Moving on, Sterling traders should keep their eyes on the Brexit and covid updates ahead of the US employment figures.
Read: US Nonfarm Payrolls April Preview: When the economy booms, it's all about rates
Technical analysis
Although a confluence of 21-day and 50-day SMA restricts short-term GBP/USD downside around 1.3865-55, a three-week-old symmetrical triangle between 1.3950 and 1.3830 becomes the key to watch.
