The FTSE 100 is trading at around 7,496. The Bank of England is due to release its interest rate decision at 12:00 GMT. Will it take a dovish or hawkish approach?

From a technical outlook the FTSE 100 index is currently trading at around 7,496 ahead of the Bank of England interest rate decision. Applying the Bollinger bands to the chart, we can see that on the 4-hour timeframe the support is sat at 7,483 (middle moving average). A break below this support level could see the index decline further towards 7,321 (lower Bolling band). On the other hand, a positive statement from the BoE may see the FTSE continue its bullish moves this week higher. Resistance sits at 7,587 then at 7,646 (upper Bollinger band). A break above 7,646 could create the momentum for a route up to 7,750. Looking at the indicators, the MACD is positive but faltering as its turning neutral. Whereas RSI is neutral, but also faltering towards negative. Investor sentiment was knocked a little yesterday after the US Federal Reserve raised its interest rates by 25bps, however, it’s now taking a more dovish approach based on the statement made by Fed Chief Jerome Powell. Rather than continuing hiking rates, the Fed will assess the situation more appropriately and potentially look into pausing the hikes for the time being. Especially after the turmoil in the banking sector. Will the Bank of England take a similar approach?