GBP/USD remains vulnerable below 1.3500 amid dovish BOE, focus shifts to NFP

• GBP/USD sellers remain in control amid dovish BOE, Brexit stalemate.
• The US dollar traders reposition ahead of the key NFP release.
• Cable eyes 2020 lows of 1.3411 after Thursday’s massive tumble.

GBP/USD is nursing losses below 1.3400 after the dovish BOE-induced 200-pips slump, as the bears await the US NFP report for the next push lower.

The 2020 lows of 1.3411 remain well within the GBP sellers sights, as the pair trades way below all the major Daily Moving Averages (DMA).

The cable crashed to fresh five-week lows of 1.3471 after the BOE defied expectations and refrained from raising key rates at its November meeting, with a 7-2 vote against a rate change.

The devil came in during Governor Andrew Bailey‘s press conference after he cautioned markets against ramping up rate hike expectations, which may lead to pushing down of the inflation below the central bank’s 2% target.

At the same, the persistent strength in the US dollar’s recovery from post-Fed decline added to the weight on GBP/USD. The USD traders repositioned ahead of the critical US NFP release, shrugging off the retreat in the Treasury yields and upbeat moon on Wall Street indices.

The dovish BOE and looming Brexit concerns will continue to undermine the sentiment around the pound, with the central banks’ monetary policy back in play. On Thursday, Brexit minister David Frost met Europe Minister Clément Beaune in Paris but two sides remain at odds, leaving the fishing row in a stalemate.

GBP/USD: Additional levels to consider