GBPUSD falls on USD optimism.
GBPUSD falls strongly today under the effect of the continuation of the U.S. dollar bullishness induced by the hawkish comments from the Fed that projected possible rate hikes in 2023. The Fed sent a very crucial message that the days of liquidity are drawing to a close. That signal has led to a dramatic position unwind, because U.S. dollar shorts were based on that unending liquidity tap from the Fed and zero interest rates. This unwinding of U.S. dollar shorts is far from over. The pair is also dragged down by moderate sterling bearishness after data showed that British retail sales fell 1.4% between April and May.
Next support to watch – 1.3802