The pound has now dipped below the 50-day moving average (£1.2579) on the 4-hourly timeframe. Next support levels sit at £1.2548 followed by £1.2522 (100-day MA).

Taking a look at the pound versus US dollar pair after the most recent Bank of England interest rate decision. BoE raised its interest rate by 25 basis points, in theory, that is positive for sterling and it did jump initially on the news. However, as it been riding the wave for several days now, selling is taking place which is leading to a slight retracement. Currently, the pound is trading at around £1.2559 against the dollar, it has now dipped below the 50-day moving average (£1.2579) on the 4-hourly timeframe. The next level of support sits at £1.2548 followed by £1.2522, which corresponds with the 100-day moving average. A break below the 100-day MA could see a further fall towards £1.2435. If the price consolidates around its current level, the previous support of £1.2579 is now acting as resistance. A move back up above the 50-day MA would then face resistance at £1.2598 followed by £1.2617 (20-day MA). Looking at the technical indicators, MACD is negative and RSI keeps faltering as it reads 36.