GBP/USD reacts to Bank of England

Note: This section contains information in English only.
Source: Dukascopy Bank SA


On May 5th, the Bank of England hiked its interest rate from 0.75% up to 1.00%, which is the highest level in 13 years. In addition, the bank revealed how the monetary policy makers voted on the rate hike. Namely, six of the committee voted for a 0.25% hike, but three members wanted a 0.50% hike that would set the rate at 1.25%. Meanwhile, the central bank revealed that in its opinion recent global events have led to a deterioration of the economic outlook for the whole world and the United Kingdom.

The GBP/USD reacted with an initial 35 base point spike up to the 1.2580 level. However, the rate started to plummet afterwards By 12:00 GMT, the currency pair had reached the 1.2395 mark via a 184 base point or 1.47% decline.

From a technical analysis perspective, the exchange rate reached below the support zone at 1.2413/1.2423 and confirmed it as resistance, before resuming to move downwards. A continuation of the decline might find support in the 1.2300, 1.2250 and 1.2200 levels.

On the other hand, a potential recovery would have to pass the 1.2413/1.2423 zone, prior to testing the resistance of the 1.2450 and 1.2500 levels.
Back to articles

Actual Topics

Thu, 05 May 2022 14:40:09 GMT

USD/JPY recovers on Thursday

The USD/JPY currency pair has recovered in the aftermath of the US rate hike. By the start of the day's US trading start at 13:30 GMT, the USD/JPY had reached back up to the resistance zone at 130.20/130.50. A move above the 130.20/130.50 zone could look for resistance in the 131.00/131.25 zone. Higher above, note the 131.50 level and the

Thu, 05 May 2022 13:34:08 GMT

EUR/USD is back below 1.0600

On Thursday, comments made by the Head Economist of the ECB beat down the value of the EUR/USD, as it was revealed that the ECB is only preparing for rate hikes. By the start of the day's US trading hours, the EUR/USD had reached below the 1.0550 mark, where it encountered support. A move below the 1.0550 mark might encounter

Thu, 05 May 2022 10:34:32 GMT

USD/CAD drops during Fed press conference

On Wednesday, at 18:00 GMT, the USD/CAD initially spiked up due to the US Federal Reserve Rate hike. However, at the following press conference the Chairman of the Federal Reserve Jerome Powell stated that the central bank is not considering 0.75% rate hikes, which caused an all out drop of the USD. On the USD/CAD charts it resulted in a

Para conocer más sobre la plataforma de Trading de CFD y Forex de Dukascopy Bank, SWFX y otras informaciones relacionadas con el Trading,
llámenos o haga una solicitud de devolución de llamada.
Para obtener más información sobre la posible cooperación, por favor llámenos o haga una solicitud de devolución de llamada.
Para obtener más información sobre las opciones binarias de Dukascopy Bank / La plataforma de operaciones de Forex, SWFX y otra información relacionada con el Trading, por favor llámenos o solicite una devolución de llamada.
Para conocer más sobre la plataforma de Trading de CFD y Forex de Dukascopy Bank, SWFX y otras informaciones relacionadas con el Trading,
llámenos o haga una solicitud de devolución de llamada.
Para obtener más información acerca de la plataforma de operaciones Crypto Trading / CFD / Forex, SWFX y otra información relacionada con el comercio,
llámenos o realice una solicitud de devolución de llamada.
Para obtener más información sobre Business Introducer y otra información relacionada con el comercio,
llámenos o realice una solicitud de devolución de llamada.
Para obtener más información sobre la posible cooperación, por favor llámenos o haga una solicitud de devolución de llamada.