The pound fell in yesterday's trading session as Jerome Powell indicated higher rates for a longer period.

The pound fell hard yesterday as Jerome Powell indicated that Interest rates in the USA could rise further and stay higher for longer to 'tame' inflation. As a result, the USD caught a bid and caused the GBPUSD pair to fall. On the 4 hourly timeframe, the pair is now oversold. This happened last in February and November when and pound did see some recovery followed by further upside or consolidation. The pair has also deviated away from the moving averages as well. MACD is solidly negative, therefore the trend remains down, however, the current drop suggests oversold conditions from a technical aspect. Looking at support, 1.1650 would be the first support followed by 1.1347. Towards the upside tough resistance now sits at 1.1928. A break above here could see the pair recover above 1.20, changing the bias to more neutral in the medium term.