The British pound sterling (Currency:GBP) is in consolidative mode on Friday morning. Trading will today focus largely on technical considerations owing to a lack of market moving data releases. We will also consider longer-dated exchange rate forecasts to get a sense of where the UK currency stands.

15:40: What is the best possible day for a British pound rally next week?

BMO Capital analyst Stephen Gallo looks ahead to the events of next week and sees the possibility of a GBP rally, on Thursday. Find out why.

15:27: A sobering view of sterling

Today has been slow, but next week currency market activity will rise once more.

Commonwealth FX have today told clients that, for the British pound, the good news may have already passed:

"With much of the good news already priced into GBP/USD, it may prove difficult for the pound to add meaningfully to its recent gains ahead of the BOE’s Quarterly Inflation Report in early August.

"Forward guidance provided by the BOE on August 7th, will set the tone for the pound going forward.

"While strong data recently has dampened expectations for additional monetary easing, new BOE Governor Mark Carney may try to anchor policy expectations by talking down the likelihood of any tightening of monetary conditions. Such a scenario could hurt the pound going forward."

14:45: GBP rates in early afternoon

To say that today's currency market action is rather flat would be an understatement:

• The GBP/EUR exchange rate is 0.04 pct higher at 1.1597.
• The GBP/USD rate is 0.01 pct higher at 1.5389.
• The GBP/AUD is 0.13 pct down at 1.6625.
• The GBP/CAD is 0.02 pct higher at 1.5826.

NB: These are wholesale market quotes. Your bank will affix their own discretionary spread when passing on their retail rate. However, an independent FX provider will guarantee to undercut your bank's offer - this can deliver up to 5 % more currency. Please find out more.

10:55: GBP/USD will go down, then up

Just in case you haven't yet learnt, currency markets are bloody difficult to get a handle on. How is this for a GBP/USD prediction?

RoboForex today tell clients:

"After testing the level of 1.5265, Pound continues forming an ascending wave, the third one, with the target at 1.5500. Later, in our opinion, the pair may start another descending correction towards the level of 1.5265 and then form the fifth ascending wave to reach the target at 1.5710."

9:40: A really important level for the GBP-USD

Matt Weller at GFT points out that this is a crunch level for the pound / US dollar exchange rate:

"At this point, all GBP/USD traders are watching the 61.8% daily Fibonacci retracement at 1.5390. This level has been the bull’s bane over the past few days, but a confirmed break above it following the shallow 38.2% retracement we’ve seen this week would likely lead to a quick continuation higher as sellers are forced to abandon their trades en masse, presenting a possible buy opportunity."

9:26: No sustained negative moves by sterling expected

Piet Lammens at KBC Markets says sterling has found a new equilibrium:

"Sterling traders will look for a new equilibrium after publication of the Q2 GDP. In a somewhat longer term perspective, we consider the GDP report as (moderately) supportive for sterling.

"The report is strong enough for the BoE to be cautious on further monetary easing. The case for additional bond buying becomes thin. So, we don’t expect a sustained negative reaction from sterling once the overly long sterling position has been worked off."

8:20: Sterling consolidates

The British pound sterling (Curency:GBP) is in consolidation mode following on from a busy Thursday that saw the release of UK GDP data.

• The pound versus US dollar exchange rate is flat on Thursday night's close at 1.5389.
• The pound versus euro exchange rate is 0.07 pct lower at 1.1584.
• The pound versus Australian dollar rate is 0.15 pct down at 1.6622.

8:15: GBP-AUD back to 1.65?

Sean Lee at FXWW says GBP/AUD is looking  overbought on a short-to-medium time-frame, a pullback could be due:

"Resistance levels are further away there at 1.6900 making sales at present levels near 1.6700 much less attractive. Wait for any stop-loss driven spikes up through resistance levels and sell into that for a move back below 1.65."