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