BoE Rate Hike Speculation in Light of Economic Indicators

Cross-currency traders are speculating that the Bank of England (BoE) will implement a 25 basis point interest rate hike during the upcoming Thursday meeting. This potential rate increase by the BoE is part of the central bank's strategy to combat inflationary pressures and stabilize the British economy.

The initial reading of the US Michigan Consumer Sentiment Index for September stands at 67.7, indicating a decrease from the previous figure of 69.5. This reading also falls below the anticipated value of 69.1 for the month.

BoE Governor Andrew Bailey has suggested that the central bank is nearing the conclusion of its series of interest rate hikes. This statement, along with concerns regarding a potential recession and signs of a cooling labor market in the UK, could intensify the pressure on the BoE to temporarily halt its rate-increasing efforts.

Selling pressures on GBP/USD persist, breaching the 1.2400 support level. The subsequent support level to monitor is at 1.2300. There is a potential for a dollar correction in the near future, and if this materializes, it could lead to a correction in the currency pair.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.2750	1.2650	1.2580	1.2400	1.2300	1.2200