Early in the American session, the British pound is trading at 1.2319, below the 21 SMA. In the next few hours, GBP/USD could make a bearish move and it could fall towards the 200 EMA located at 1.1971. The key will be to wait for a close below 1.2290.

The Bank of England raised the interest rate by 0.50% to 3.5%, the highest level since October 2008, as expected. This data had already been priced in the GBP/USD pair, and the market acted against the trend. Therefore, we saw a fall in the pair and it is likely to extend its weakness in the coming days.

In case the British pound consolidates above 1.2290, it could reach the strong resistance of 1.2380 -1.2410. With a return above 1.2410, we could expect the bullish cycle to resume and the instrument could reach 1.2443 and even the psychological level of 1.25.

However, risk aversion in the markets could help the US dollar to strengthen, thus putting pressure on GBP/USD and it could fall towards support levels of 1.20.

As long as GBP/USD continues to trade below 1.2380, there is a chance that the British pound will continue to decline and may reach +1/8 Murray located around 1.2207 and could even fall towards the psychological level of 1.20 and finally, towards the 200 EMA located at 1.1971.

Our trading plan for the next few hours is to sell below 1.2390 -1.2350, with targets at 1.2207 at 1.1970. The eagle indicator is giving a negative signal, which supports our bearish strategy.