GBPUSD fell sharply after the biggest rate hike since 1989. The market has been pricing huge rate hikes reaching over %5 since the announcement of Truss’s fiscal program. But the Bank of England has another idea. If rates increase according to the expectations %3 of GDP will be written off and inflation will come down to zero, BOE said.

 BOE raised the rates by 75 basis points according to expectations, but GBPUSD correct itself according to new rate expectations and fell sharply from the upper line of the downtrend channel to the Fibonacci %23.6 retracement level. As long as the trend holds, downside pressures will continue. If GBPUSD breaks the retracement level to the downside and 1,1045 support, 1.09 and the lower line of the channel 1,0750 level can be followed as support. And for the upside moves, 1.14 and 1.16 are the main resistances to follow for breakouts.