In the Asian session on Wednesday (November 9), GBP/USD fell and was temporarily reported at 1.1533, down 0.08%. On November 3, the Bank of England raised interest rates by 75 basis points, indicating its determination to fight inflation, thus setting its largest interest rate hike in 33 years. So far, UK interest rates have soared to 3% from close to zero at the end of last year.
Bank of England dynamics
The Bank of England has warned that the U.K. economy will be in a “very challenging” recession for two years, with unemployment expected to nearly double by 2025. The Bank of England also said that while it will not be the sharpest recession Britain has experienced, it will be the longest since records began in the 1920s.
GBP technical analysis:
If support at 1.1450 (50-period SMA) fails, the sellers can act to pull GBP/USD down to 1.1400 (psychological level, 100-period SMA) and 1.1350 (20-period SMA).
