Markets expect the BoE to raise rates by 50 basis points. The pound fell after the Fed delivered a 75bps rate hike and flagged more. Britain’s short-term inflation outlook has improved. Today’s GBP/USD outlook is slightly bullish as the Bank of England is expected to raise interest rates by at least half a percentage point to combat inflation that is barely off a 40-year high. While financial markets have priced in a larger hike to 2.5%, economists surveyed by Reuters last week expect the BoE to raise rates to 2.25% from 1.75%. –Are you interested to learn more about Forex demo accounts? Check our detailed guide- On Wednesday, the US Federal Reserve raised its benchmark interest rate by 0.75 percentage points and hinted at other significant hikes. Following the Fed decision, the pound fell to its lowest level versus the dollar since 1985 and its lowest level against a basket of currencies since 2020, driving up the cost of imports. Britain’s annual rate of consumer price inflation dipped from a 40-year high of 10.1% in July to 9.9% in August, marking the first decline in almost a year, though it was still far higher than the BoE’s aim of 2% and the highest in the Group of Seven. Since the BoE’s most recent meeting in early August, the short-term inflation outlook has improved slightly. It is unlikely that Inflation will soar as high as the 13.3% peak the BoE had factored in for October, or rates of more than 15%, which economists predicted for early 2023. This is thanks to Liz Truss’s household and corporate energy pricing curbs. GBP/USD key events today All focus will be on the BoE’s interest rate decision later today, which will cause a lot of volatility. Investors will also pay attention to the initial jobless claims report from the US. Get FREE Forex Signals Now! GBP/USD technical outlook: Big downside potential with bears eyeing 1.1200 The 4-hour chart shows the price below the 30-SMA and RSI below 50, showing a downtrend is in progress. The price broke below support at 1.1360, showing how strong the sellers were. This support has now turned to resistance, and the price might retest it at some point. –Are you interested to learn more about CFD brokers? Check our detailed guide- The RSI got to the oversold region when buyers came in for a pullback. However, the downtrend looks set to continue with the next target at the 1.1200 psychological level. Looking to trade forex now? Invest at eToro! Trade Forex Now! 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Majors share Read Next USD/CHF Price Analysis: Bulls Roar Despite SNB’s 75bps Hike Saqib Iqbal 1 week Markets expect the BoE to raise rates by 50 basis points. The pound fell after the Fed delivered a 75bps rate hike and flagged more. Britain's short-term inflation outlook has improved. Today's GBP/USD outlook is slightly bullish as the Bank of England is expected to raise interest rates by at least half a percentage point to combat inflation that is barely off a 40-year high. While financial markets have priced in a larger hike to 2.5%, economists surveyed by Reuters last week expect the BoE to raise rates to 2.25% from 1.75%. -Are you interested to learn more about Forex… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.