FOREX Chart Of The Day: GBPUSD BoE Hikes Rates

#GBPUSD could continue to move higher after the Bank of England shocks the market with a rate hike to 0.25%.

Watch the video to learn more…

GBPUSD Analysis

The Bank of England hiked rates from 0.1% to 0.25% in a shock move that took investors by surprise. The rising inflation rate in the UK combined with other positive data such as employment was the factor in the hike despite the latest Covid restrictions in the UK. The BoE were forecast to leave rates unchanged at 0.1% with the risk of the Omicron variant spreading through the UK being the main factor for the hold. However, the central bank took action to fight the increase in inflation.

This led to the GBPUSD breaking out of its range and above the major 1.3300 level. If the price can hold above this level we should see a rally sustained and a continuation of the trend. We will be looking for a bullish retest of the range in order to identify a long idea.

Do you trade NZDJPY? you can find our analysis here.

Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you from your quick account setup to any future concerns. Start trading with Blueberry Markets today.

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.

See author's posts