|

GBP/USD: Bulls look to recapture 1.3200 as BOE raises the interest rate to 0.75%

  • GBP/USD is looking to reclaim 1.3200 on subdued performance from the DXY.
  • BOE raised the interest rates by 0.25% for the third time in a row.
  • Fed’s gradual approach of raising interest rates has downgraded the greenback.

The GBP/USD pair has been offered around 1.3200 after the Bank of England (BOE) raised the interest rates by 25 basis points on Thursday. The interest rate in Britain has reached 0.75%.

It is worth noting that the BOE has increased their interest rates consecutively for the 3rd time on Thursday. Also, the BOE was the first central bank, which raised the interest rates first since the pandemic of Covid-19 when all central banks were operating on the lowest interest rates. The BOE has preferred not to take the bullet and stick to interest rate expansion amid January’s inflation print at 5.5%, which is near a 30-year high. Moreover, the interest rate is likely to rise further in wake of the war between Russia and Ukraine.

The cable has witnessed a decent upside move in the last three trading sessions after remaining vulnerable on negative impulse in the market amid Russian military activity in Ukraine.

Meanwhile, the US dollar index (DXY) has sensed some buying interest near 97.70 and is oscillating around 98.00 after the carnage. Interest rate expansion from the Federal Reserve (Fed) brought a selling pressure on the greenback as Fed Open Market Committee (FOMC) preferred a gradual rate expansion rather than going aggressive.

Going forward, the headlines from the Russia-Ukraine war will remain a major trigger for the market. While, investors will also focus on Federal Reserve Bank Gov. Michelle Bowman’s speech, which is due on Friday.

GBP/USD

Overview
Today last price1.3161
Today Daily Change0.0013
Today Daily Change %0.10
Today daily open1.3148
 
Trends
Daily SMA201.3285
Daily SMA501.345
Daily SMA1001.3425
Daily SMA2001.3605
 
Levels
Previous Daily High1.3211
Previous Daily Low1.3088
Previous Weekly High1.3246
Previous Weekly Low1.3028
Previous Monthly High1.3644
Previous Monthly Low1.3273
Daily Fibonacci 38.2%1.3135
Daily Fibonacci 61.8%1.3164
Daily Pivot Point S11.3087
Daily Pivot Point S21.3026
Daily Pivot Point S31.2963
Daily Pivot Point R11.3211
Daily Pivot Point R21.3273
Daily Pivot Point R31.3334

Author

Sagar Dua

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

More from Sagar Dua
Share:

Editor's Picks

Bitcoin, Ethereum, and Ripple show tentative recovery as key technical levels hold

Bitcoin, Ethereum and Ripple trade with a mild positive bias on Wednesday as sentiment improves across the cryptocurrency market. BTC is testing its 50-day Exponential Moving Average, ETH has broken above a key resistance level at $1,800, while XRP has found support around a key level.

BoC set to keep interest rates steady for sixth consecutive meeting

The Bank of Canada is widely expected to keep its policy rate unchanged at 2.25% on Wednesday. The central bank will announce its policy decision at 13:45 GM. This would be the sixth consecutive event with the central bank keeping its hand steady. The BoC left its policy rate unchanged at 2.25% last month, as widely anticipated.

-0.4%: Why the biggest CPI drop since 2020 couldn't buy back a single cut

The June CPI fell 0.4% on the month, the largest one-month decline since April 2020, dragging the annual rate to 3.5% from May's 4.2% and snapping a three-month acceleration streak. Core prices went nowhere, flat on the month and down to 2.6% YoY, both under consensus.