The pound has tested the support along the 100-day moving average even though BoE raised interest rates for the 14th consecutive time.

The pound is currently trading at around £1.2674 against the US dollar. The Bank of England earlier in the day raised interest rates for the 14^th consecutive time to 5.25%, despite the hike, the pound continued lower on expectations of fewer future interest rates. By looking at the daily timeframe, we can see sterling has broken through the trendline support which dates back to the 8^th of March. It has briefly tested and dipped below the support of the 100-day moving average (£1.2628) earlier but recovered slightly since. A break below the moving average could see the pound fall lower towards the next level of support sitting at $1.2487. However, consolidation along the MA may see a short-term bounce higher. Resistance is now at £1.2728 followed by the previous support of £1.2754, which is now acting as resistance. Looking at the technical indicators, MACD is still strongly negative and so is the RSI as it reads 36.