The pair is now running into a fresh test of the 200-hour moving average (blue line) at 1.1191 as we see a quick tumble in cable from 1.1250 to 1.1190 - down 1.2% on the day.
The drop coincides with another bout of dollar strength with EUR/USD pulled to the lows as well, down 0.5% to 0.9720, but also as we start to see reports confirming that Kwarteng has been sacked as UK finance minister. UK 30-year gilt yields are down 18 bps to 4.36% but are off earlier lows of around 4.24%.
There is talk in UK political circles that Kwarteng's sacking is not going to go down well with Tory lawmakers and they might just call for Truss' head. The political uncertainty and instability isn't helping with the mood, as the volatility swings continue for the pound.
For now though, the technicals will at least do some work. If we break below 1.1200 and the 200-hour moving average, then the near-term bias becomes more bearish and we open up a lower range for GBP/USD towards the 100-hour moving average (red line) at 1.1114 at least.
