Forex Chart Of The Day: GBPUSD Trades Lower After BoE Rate Decision

Today, the Bank of England hiked interest rates to 4.50%. A level we haven’t seen since 2008, will this see the #GBPUSD price trade higher?

Watch the video to learn more…

GBPUSD Analysis 

Today, the Bank of England (BoE) made a significant shift in its monetary policy, hiking its base rate to 4.50% from the previous 4.25%. This represents the highest level since 2008, reflecting the BoE’s firm stance towards controlling inflation and maintaining the strength of sterling in an increasingly volatile global economic environment. This decision, while pivotal in managing inflation, carries implications for both mortgage holders and savers. It also introduces an added layer of complexity to the UK’s economic landscape, necessitating prudent fiscal measures to balance this monetary tightening.

Across the Atlantic, the scenario in the United States presents a different picture. US unemployment claims have recently risen to 264K, causing investors to rethink their expectations of further interest rate increases by the Federal Reserve. The growth in jobless claims, a critical barometer of labor market health, is pushing for a more measured monetary policy approach. The Federal Reserve may find itself considering a pause in its cycle of interest rate hikes to avoid escalating employment difficulties.

GBPUSD

The price on the chart has traded through multiple technical levels and some observations included:

• GBPUSD price found resistance at the key 1.2650 level.
• The H4 double top pattern suggests the market trend could be changing.
• However, if it does it may only last a short while as price is coming into support at 1.2350

Have you watched our interview with USDJPY analysis? You can see it here. 

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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