Bank of England raises policy rate to 4%

A BoE rate hike could be viewed as a mildly positive surprise for GBP, but the market may have largely priced it in. The price is trading at 1.348, above the SMA20 and SMA50, with the short-term trend slightly upward. RSI at 52.9 is in neutral territory, with no overbought pressure. MACD is below the signal line and momentum is weak, suggesting the upward move may be limited. A moderate upward reaction can be expected in the 1-3 day outlook, but confidence is low.

The BoE's rate hike is fundamentally a development in favor of GBP and is expected to support sterling against the Turkish lira. However, technical indicators are mixed: RSI at 53.9 is in neutral territory, MACD is below its signal line (0.021 vs 0.039), and the price is trading slightly above the SMA20/SMA50. Since the 24-hour change is only 0.04%, the market may have largely priced in the news. Limited upward pressure is possible in the short term, but with momentum weak, the move is likely to remain contained and volatility risk should not be overlooked.