BOE Pill: Sees the need to raise the bank rate to 4.00%. GBPUSD moves higher on the news.

Bank of England Chief Economist Huw Pill delivered hawkish remarks, expressing a preference to raise the benchmark Bank Rate to 4.00% from the current 3.75%. Pill emphasized that prompt, decisive monetary tightening is necessary to prevent persistent second-round inflation effects, driven by energy costs spilling into wages and prices, from taking root. However, he clarified that a prompt adjustment does not necessarily signal the beginning of a prolonged or aggressive hiking cycle. Following Pill's comments, the GBPUSD pair moved higher, significantly improving its short-term technical outlook. The exchange rate broke above its falling 100-hour moving average at 1.35206, an area that coincides with the 38.2% Fibonacci retracement level of the rally from the end-of-July low. Technicians note that holding above 1.35206 confirms the bullish breakout, opening the path toward the next resistance swing zone between 1.3543 and 1.3557, with the 200-hour moving average at 1.3567 serving as the next major upside hurdle.