The GBP/USD pair strengthened to near 1.3385 during early European trading on Monday, November 9, 2026, following a hawkish rate hike by the Bank of England (BoE). The UK central bank raised its benchmark interest rate by 25 basis points to 4.00%, the first increase in over three years. BoE Governor Andrew Bailey cited the Middle East war and rising energy prices as key factors influencing future rate decisions.
Analysts at ABN Amro noted that the BoE's decision matched the upper bound of the Fed Funds Rate range, with eight committee members supporting the move and one favoring a larger 50-bps increase. The BoE revised its growth forecasts upward to 1.6% for this year and 1.3% for next year, exceeding government projections. However, inflation risks and geopolitical uncertainties remain significant.
BoE's Chief Economist Huw Pill signaled greater rate uncertainty, emphasizing that future policy depends on corporate pressures and growth dynamics. This dovish shift has reinforced downside risks for the Pound, as markets reassess expectations for sustained rate hikes. Technical analysis shows GBP/USD holding just below the 100-day SMA, with key resistance at 1.3395 and support around 1.3355.
The Pound Sterling, the world's oldest currency, is heavily influenced by BoE monetary policy and economic data releases. Strong economic indicators typically boost the Pound, while weak data can lead to declines. The Trade Balance is another critical factor, as positive net exports strengthen the currency.