On Monday the pound slid against its U.S. peer, as markets expected the Bank of England's monetary policy statement due
later in the day and as demand for the dollar was broadly bolstered.
GBP/USD touched 1.5394 during European morning trade, the session low; the pair subsequently consolidated at 1.5419, shedding 0.24%. Cable was likely to find support at 1.5241, the low of May 8 and resistance at 1.5525, the high of May 8 and a more than two-month high.
Later on Monday, the BoE is expected to leave its benchmark interest rate unchanged at 0.50% and its asset purchase facility program at £375 billion.
On Friday the British currency had surged to more than two-month highs against the dollar after Prime Minister David Cameron’s Conservative Party won a surprise majority in the U.K. general election.
The dollar was meanwhile supported after the Labor Department reported on Friday that the U.S. economy added 223,000 jobs in April, just shy of economists forecast for 224,000 while the unemployment rate ticked down from 5.5% to 5.4%, the lowest since May 2008.
However, March’s payrolls were revised to indicate that only 85,000 jobs were created, the fewest since June 2012.
Sterling was higher against the euro, with EUR/GBP edging down 0.13% to 0.7242.
Sentiment on the single currency remained vulnerable as Greece and the euro zone were to hold a fresh round of talks later Monday as Athens scrambles to reach an agreement on a package of economic reforms in order to access fresh bailout funds.
Ahead of the negotiations, Athens said that it was still hopeful that progress would be made but euro zone officials have indicated that too many issues still remain unresolved.
Tuesday is a deadline for Greece to repay approximately €770 to the International Monetary Fund.
