The Bank of England is set to release its interest rate decision later today and as it stands there is a 90% chance of a hike. This raises two questions:

• Is there any more upside to come?
• What happens if they don’t hike?

There might not be much more room to go to the upside. I feel like 1.3300 might be a good level to the upside to use as a trading level. If they hike I would look to buy a pullback here.

If they don’t hike then I think we might take a big hit. To the downside, I think we will break 1.3100.

Either way, I think there will be volatility with this one, with some significant moves to the downside if we don’t get what the market is expecting.

GBP/USD – 240 min Chart.