GBP/USD Price Analysis: Bears pounce on bulls and drag them back to channel support

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  • GBP/USD falls after Powell’s aggressive comments.
  • The US dollar returns to the charge and the cable meets the support of the channel.

Risk markets were rocked by Wednesday’s FOMC event, as the Fed’s statement was delivered with dovish rhetoric, while the President’s press conference began and ended with a hawkish tilt.

His aggressive line comments erased almost 100% of the dovish FOMC statement’s decline in the US dollar:

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GBP/USD H1 Chart

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Price has dipped into channel support after Powell balked at the rally in risk markets when pressed for comment on the timing of a pivot. However, as support breaks, there is a liquidity gap according to the rally that took place on October 25.

Given the times of the day, the most likely path from here would be for a correction before the next push lower:

Source: Fx Street

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