Despite the 50 bp hike by the BOE, the GBPUSD is lower on the week and below MA support

Despite a 50 basis point hike by the Bank of England this week, the GBPUSD is trading lower in the week. Concerns of slower growth despite high inflation is weighing on the currency pair today.

Technically, the price of the GBPUSD has dipped back below its 200-hour moving average at 1.27312. Stay below the moving average keeps the bias in the favor of the sellers at least in the short term. There is work to do, however, as a swing area between 1.2689 and 1.2698 needs to be broken and stay broken to give sellers more confidence. Below that is the 38.2% retracement of the move up from the May 25 high at 1.26413. Getting below each would increase the bearish bias and is needed from a technical perspective to show the sellers have some strength.

Close risk for shorts is a move with momentum back above the 200-hour moving average of 1.27312 followed by a move back above its 100-hour moving average of 1.27561 (green and blue lines in the chart below).. The price has tried to move above the 200 hour moving average off the corrective move higher but has not gotten very far.