A dovish BoE leads to a weaker UK Pound

The Bank of England delivered a 75bps rate hike last week but also signaled warnings of a deep recession and that rates may have peaked. This brought broad base weakness to the GBPUSD with the price testing a low of 1.1150.

Toward the end of the week, weakness in the DXY brought a brief respite to the GBPUSD, with the price trading higher towards 1.1365.

Look for the GBPUSD to trade higher towards the 1.1380 price level before trading lower again. If the price breaks below the 1.13 price level, the GBPUSD could slide lower to retest the key support level of 1.1150 again.