GBP/USD boosted by the Bank of England

The GBP/USD pair was trading in the red on the H4 at the time of writing. It was located at 1.3600 psychological level. Today, it has climbed as high as the 1.3627 level after the BOE statement. In the short term, it has reached a resistance area, so it remains to see how it will react.

As you already know, the Bank of England decided to increase its rate by 0.25% as expected, so the Official Bank Rate is 0.50%. Surprisingly or not, four MPC members voted for a 0.50% rate hike. On the other hand, the US reported mixed data today. It remains to see what will really happen tomorrow after the Non-Farm Payrolls.

GBP/USD jumped above the 23.6% retracement level, but it has failed to close above it. After passing above the downtrend line and above the 38.2% (1.3527), the price was expected to extend its growth.

In the short term, the bias is bullish, but after this swing higher, we cannot exclude a temporary decline if the Dollar Index starts growing again. A valid breakout above the 1.3644 and through the median line (ML) could announce an upside continuation. On the other hand, a bearish pattern, false breakouts above these upside obstacles could signal a potential leg down.

The currency pair challenges the 23.6% (1.3611) retracement level. It could drop if it stays below this upside obstacle. At the time of writing, it was premature to talk about further growth or about a new leg down.