GBP Slides Below Key Level as Fed Hike Puts Pressure on Bank of England

The pound sterling fell below $1.3400 against the US dollar after the Federal Reserve raised its benchmark interest rate to a range of 3.75-4.00%, surpassing the UK Bank Rate for the first time this year.

The Bank of England's decision on Thursday is now under scrutiny, with markets anticipating no change in the current rate of 3.75%.

A 0.68% drop and a 91-pip slide have left sterling vulnerable to further losses, with analysts predicting that a close above $1.3450 would negate the bearish setup.