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Forex - GBP/USD slips ahead of BoE meeting

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Investing.com - The pound slipped lower against the dollar on Wednesday ahead of the Bank of England's upcoming policy meeting on Thursday and U.S. data on nonfarm payrolls on Friday.

GBP/USD hit 1.5097 during European morning trade, the session low; the pair subsequently consolidated at 1.5105, slipping 0.14%.

Cable was likely to find support at 1.4998, Monday's low and an almost two-and-a-half year low and resistance at 1.5185, the high of March 1.

The pound came under pressure ahead of the outcome of the Bank of England's policy meeting on Thursday, amid speculation over whether the bank will resume its asset purchase program.

Data on Tuesday showing that activity in the U.K. service sector rose to a five-month high in February allayed fears over a triple-dip recession.

The report came one day after data showed that the U.K. construction sector contracted last month. The U.K.'s manufacturing sector also contracted unexpectedly in February.

Investors were also anticipating Friday's data on U.S. nonfarm payrolls amid optimism that the economic recovery is gaining momentum. Data on Tuesday showed that the U.S. service sector expanded at its fastest rate in a year in February.

Elsewhere, the pound was slightly lower against the euro, with EUR/GBP easing up 0.11% to 0.8637.

Outgoing BoE Governor Mervyn King was to appear before the Banking Standards Committee in parliament later Wednesday, to give his view on the financial sector.

The euro zone was to release revised data on fourth quarter growth, while the U.S. was to publish a report on ADP nonfarm payrolls and official data on factory orders.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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