GBP/USD Dovish BoE brought bearish sentiment

BoE raised its interest rate today for the second time since the financial crisis in 2008 amid a strong labor market, high inflation and growing concerns about Brexit. The Bank of England's nine-member monetary policy committee voted unexpectedly unanimously to raise the interest rate from 0.50 percent to 0.75 percent, which is the highest level since March 2009.
On this news the GBP/USD reacted with huge drop, losing 0.65% and marked daily low at 1.3045. The pair succeed to bounce from the low and currently is trading at 1.3058.
Technically speaking the short-term outlook remains neutral to bearish. On the four hour time frame the price is developing  below its slow bearish moving averages. RSI is showing strong downward momentum and is nearing 30 level. Stochastic has retreated from its extreme negative readings but has eased around 20.  
However to bring back the bullish mode the pair will need to fight first 1.3165 and next 1.3215 and eventually 1.3245. On the other hand bears will need to regain the 1.3000 handle in order to drive the pair down towards 1.2957 (the 2018 low).

Loonie broke 1.3100 on BoC’s rate hike

Bank of Canada raised the key rate by 25 bps to 1.50%, as it was largely anticipated. The Bank keeps its projection for close to 2% GDP growth over 2018-2020 and sees unprtentious effects of tariffs on economic growth and prices. As the time of writing the USD/CAD pair is trading at 1.3117, correcting from the 3-week low at 1.3065 on the rate hike announcement from BoC. Technically apeaking the short term outlook remains neutral to bearish. On the four hour time frame the price is developing below the flat 50-day and 100-day SMAs and also the flat 20-day SMA is marching with the current price.RSI and stochastic are showing bearish momentum but yet remain above their mid-lines. 

Stong support is provided by the 1.3100 level which was for shortly broken today. The pair vulnerable around this area so I expect another test and in case of success bears will try next one at 1.3064. Looking to the upside first resistance is seen at 1.3174 and second at 1.3193.

Fanfares for no surprise

"The simple message is the economy is doing well". And the widely expected rate hike is now fact along with raised Fed’s target for short-term interest rates to a range of 0.75% and 1.00%.

After the event the US Dollar plummeted due to the aggressive profit - taking and then followed elevation in the other major currencies. AUD/USD is up with 1.98%, EUR/USD added 1.23% and GBP/USD moved higher with 1.14%.  

Gold was also positively affected and was trading elevated. The precious metal surged above the significant support level at $1200 and marked a 1-and-a-half week high at $1228.76.
I do not trade news, but it was quite interesting to be only observer in a situation alarming for attention.

EUR/USD Fed's Dot-plot Triggered Bearish Reaction

Finally it became clear that the Federal Open Market Committee is raising the benchmark interest rate by 25bp to range of 0.50% to 0.75%. Furthermore the central bank is going to extend the dot-plot to three rate hikes in the upcoming year.

The EUR/USD pair was failed to hold above 1.0600 mark ahead of the conference. After the press release the pair tumbled to 1.0530 and marked an inraday low even lower at 1.0495.

As seen on the H4 chart the price has moved well below the moving averages. RSI has turned sharply to south and is currently close to 30 level. Stochastic is currently placed within mid-lines but displaying strong bearish momentum. 

First support is seen at 1.0500  and lower at 1.0450. Resistance now is located at 1.0560 and higher at 1.0600.