The GBPUSD currency pair, currently at a price of 1.27457, has undergone a decline of 0.17% after the Bank of England’s unexpected decision to raise interest rates by 50 basis points.

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• GBP/USD experiences dip, shedding 0.17% following BoE’s surprise 50 bps rate hike.

The pair currently trades last at 1.27457.

The previous day high was 1.2803 while the previous day low was 1.2691. The daily 38.2% Fib levels comes at 1.276, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2734, expected to provide support.

GBP/USD opened the Asian session with a bearish mood after hitting a weekly high of 1.2841 to see those gains evaporate as UK recession fears reignited, post the Bank of England 50 bps rate hike. The GBP/USD closed on Thursday with losses of 0.17%. At the time of writing, the GBP/USD exchanges hands at 1.2742.

Must read: GBP/USD dives following unexpected BoE rate hike, sparking UK’s recession concerns

The GBP/USD remains upward biased, and the dip towards the 1.2720 area opened the door for buyers to re-enter at a lower price level. Nevertheless, the Relative Strength Index (RSI) exited overbought conditions, which triggered a sell signal, though it’s pending breaking support of the weekly low at 1.2691.

If GBP/USD drops below the latter, the next support would be the 20-day Exponential Moving Average (EMA) at 1.2635, followed by the psychological 1.2600 price level. Once cleared, the next support would be the confluence of the June 13 daily low and the 50-day EMA at 1.2499-1.2522.

Failure to drop below the weekly low, the GBP/USD would be set to re-test the 1.2800 figure. The next stop will be the year-to-date (YTD) high at 1.2848 before reaching 1.2900.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2748 at the time of writing. Pair opened at 1.277 and is trading with a change of -0.17 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2551, 50 SMA 1.2513, 100 SMA @ 1.2336 and 200 SMA @ 1.2063.

The previous day high was 1.2803 while the previous day low was 1.2691. The daily 38.2% Fib levels comes at 1.276, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2734, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2707, 1.2643, 1.2595
• Pivot resistance is noted at 1.2818, 1.2866, 1.2929

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