The GBP/USD pair plunged in the last hours as the USD was boosted by the DXY's rebound. In the short term, the pair increased a little after its previous sell-off but the bias remains bearish as long as it stays under strong upside obstacles.
Fundamentally, the BOE increased the Official Bank Rate from 1.75% to 2.25% matching expectations. The Bank of England could continue hiking rates in the next monetary policy meetings.
On the other hand, the US data came in mixed today. The USD received a helping hand from the Unemployment Claims indicator which came in at 213K in the last week versus 220K expected, and from the Current Account, the indicator was reported at -251B above -261B forecasted. Tomorrow, the UK and US manufacturing and services data could bring more action.
Technically, the pair found support around 1.1220, and then it came back to retest the 1.1350 kye level and the downtrend line. Its false breakout through the confluence area formed at the intersection between these resistance levels signaled a new sell-off.
As long as it stays below the downtrend line, the bias remains bearish. The next downside target is represented by 1.1220.
A new lower low, dropping and closing below 1.1220 may confirm more declines towards the weekly S2 (1.1110).