As this currency pair has been consolidating there is more time to elaborate. The NFP was not brilliant but it did pull the employment change figure back above 200k which is good for the USD. Although the Conservatives took power in the UK the GBP had already piced this in before the main result. I am expecting the GBP to rally as in my longer term previous analysis however I expect the MPC to hold of on rates until mid 2016. We are on the verge of a GBP/USD rally but I would like to see a drop back to 15000 first. The poor GDP report we had recently might beenough for the MPC to have a slightly dovish tone and the Expectation of a 0% QIR report this will be enogh to facilitate this drop. However if inflation shows growth even 0.1% we can expect an immediate rally on Wednesday.
