GBP/USD fell to lows of 1.4859, the lowest since March 12, before settling at 1.4895, down 1.18% for the day, bringing the week's losses to 2.07%.
Cable is likely to find support at 1.4650 and resistance at 1.5000.
The Department of Labor said the U.S. economy added 195,000 jobs in June, more than the 165,000 increase forecast by economists. May's figure was revised up to 195,000 from a previously reported 175,000. The unemployment rate remained unchanged at 7.6% in June.
Fed Chairman Ben Bernanke said last month the bank could begin tapering its USD85 billion-a-month asset purchase program by the end of 2013 and wind it down completely by the middle of 2014 if the economy picks up as the central bank expects.
The pound fell more than 1% against the dollar on Thursday after the Bank of England adopted a dovish stance on interest rates and took steps to give forward guidance to markets following its monthly meeting.
The BoE left its benchmark interest rate unchanged at 0.5% and said economic data over the past few months was consistent with the recovery set out by the bank in its May inflation report, but warned that the "significant upward movement" in bond yields would weigh on the outlook for growth.
“In the Committee’s view, the implied rise in the expected future path of Bank Rate was not warranted by the recent developments in the domestic economy”, the BoE said.
The BoE took the unusual step of publishing a rate statement despite making no change to monetary policy, following its first meeting under the leadership of new Governor Mark Carney.
Reports earlier in the week showed that service sector activity in the U.K. expanded at the fastest pace since March 2011 in June, while manufacturing activity expanded at the fastest pace in more than two years, boosting the outlook for second quarter growth.
In the week ahead, investors will be looking ahead to Wednesday's minutes of the Federal Reserve's June meeting, as well as Friday's closely watched data on U.S. consumer sentiment.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Monday as there are no relevant events on this day.
Tuesday, July 9
The U.K. is to release official data on manufacturing production, as well as a report on the trade balance, the difference in value between imports and exports.
Wednesday, July 10
The Federal Reserve is to publish the minutes of its June meeting. Meanwhile, Fed Chairman Ben Bernanke is to speak.
Thursday, July 11
The U.S. is to release the weekly government report on initial jobless claims, a leading economic indicator, as well as official data on import prices.
Friday, July 12
The U.S. is to round up the week with official data on producer price inflation and preliminary data from the University of Michigan on consumer sentiment.
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