The BOE has increased interest rates by 0.25%, which may devalue the pound in the short term.

Technicals

The pound continues to feel pressure against the dollar. As rates continue to rise across the globe, this scenario may continue. There is support below for the pair at 1.20, however a break here could take the GBP/USD pair towards the 1.18 trendline low and then at 1.15. Towards the upside, resistance sits at 1.2185 followed by 1.2250 and then the green resistance line at 1.2651. Until this level is broken would the pound's outlook be more neutral/bullish. RSI on the daily timeframe is also reading 33.1, suggesting near oversold conditions, but not quite yet.