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What does a rotting currency do when its central bank announces the highest rate in a decade?

GBPUSD Tech analysis by Simon Kazinsky on 06:14 August 03, 2018 EST

The Bank of England, dragged by decisions taken by other major central banks in recent months, rose its key interest rate to 0.75%, the highest in almost a decade, on Thursday.

Investors appear not convinced that this move is not the consequence of following what other central banks such as the FED are doing by raising their rates as their economy, and unlike the Britain, grow at a reasonable pace.

It is also interpreted that this hike gives gunfire in case more accomodative policy will be require soon as recent economic data points to weakness and the Brexit uncertainty remains.

The pound dove below 1.30 against the dollar following the announcement.