GBP/USD remains capped below the 100-day SMA at 1.3395 as the market weighs a hawkish 25 bps BoE rate hike against dovish commentary regarding future policy uncertainty.
The BoE's 25bps hike to 4.00% (first in over three years, backed 8-1 with one dissenter wanting 50bps) supports the Pound, and the pair trades near 1.3385. However, Pill's speech scored 4.2/10 versus his 6.4/10 average, signalling a dovish shift, and technically the pair stays capped under the 100-day SMA at 1.3395, keeping a mildly bearish bias.
The GBP/USD pair holds steady near 1.3385 following the Bank of England's decision to raise interest rates by 25 basis points to 4.00%. While the move was supported by an 8-1 committee vote, dovish signals from BoE official Pill and technical resistance at the 100-day SMA of 1.3395 keep the pair under pressure.
The Bank of England raised its benchmark rate by 25 basis points to 4.00% with strong committee backing (8 votes for, 1 for a 50bps hike) and projected inflation around 5% by mid-2027, which supports the Pound against the Dollar.
A dovish signal from BoE's Pill (nothing baked in for next year's rates) plus technical resistance at the 100-day SMA near 1.3395 point to downside; below support at 1.3355, a pullback could target 1.3272 and then 1.3225.