GBP/USD Accelerates higher on weak ADP report

Employment in the US private sector disappointed last month, shattering hopes that the Fed will raise interest rates in September. The number of employees increased by 185,000 in July compared to the 229,000 booked in June, according to ADP. On Friday, the non-farm payroll report will provide further hints of labor market development, with analysts expecting a gain of 220,000 people added to the workforce, while the unemployment rate should stay intact at 5.3%.

The news spurred US Dollar sell-off with GBPUSD trading near session highs at 1.5646. Technically, there is an Inverse Head&Shoulders pattern developing. Its right shoulder took the form of a 'bear trap', which adds to British Pound strength.

Please, mind the heavy event risk on Thursday. The Bank of England meeting will be closely watched following a series of comments from MPC members, including Governor Carney, that the first rate hike since the crisis is moving closer. In conjunction with Thursday’s interest rate decision, for the first time we also have the simultaneous release of the MPC meeting minutes and August Quarterly Inflation Report, followed by a press conference. This deluge of information flow has been dubbed 'Super Thursday' among analysts.