The Pound falls after the Bank of England’s rate decision

The Bank of England has risen its interest rates from 0.25% to 0.50% for the first time since 2007 when the financial crisis started. Even though the rate hike should have supported the Pound, the GBP/USD falls more than 200 pips from the 1.3300 zone to below the 1.3100 level as shown on the daily chart. The drop on the Pound is due to the fact that the Bank of England used a dovish language and said that the next rate hikes will be gradual. Additionally, it looks like the market had already priced in the current rate hike and the GBP/USD had no space to rally further. At the moment, the pair keeps its bearish momentum and it may possibly visit the 200 day EMA, around the 1.3000 zone where it could find some support. Below the 1.3000 level, its most relevant support is at the 1.2800 level. Above the 1.3100 level, the pair would be going back into the congestion area where it may consolidate for a longer period of time.