If there was a less hawkish central bank after the Fed, SNB, BOE and ECB all raised rates by 50 bps over the last 18 or so hours, it was the BOE who had some members vote for less of a hike and overtures that inflation was peaked and growth was a concern. In contrast, the ECB had a "come to inflation" moment, saying they need to raise rates significantly. The Fed meanwhile "gazumped" the market's expectation for the terminal rate when they upped their projection to 5.1% from 4.6% at the end of September guesstimate (the market was around 4.85%.
So all that has the GBP moving lower.
Looking at the GBPUSD on the hourly chart, the price has moved back below the 50% midpoint of the move up from the December low at 1.22748 and also below the 200 hour MA at 1.22606. The pair is approaching the 61.8% retracement of the same move higher at 1.22349 and a swing area between 1.2220 and 1.22337. Move below those levels opens the downside more open for the pair. On Tuesday and Wednesday, the highs peaked near the same level at 1.22458 (double top). Yesterday, the lows stalled at the December 5 lows and bounced, but today, the price moved below, helped by the less hawkish BOE and the more hawkish Fed and ECB (ultimately).
Looking at the daily chart, the pair also moved below a swing area between 1.2278 and 1.23436 (see red numbered circles on the daily chart below).. The high prices this week stalled near the 61.8% retracement of the 2022 trading range. The fall below the swing area has shifted the bias in the short term back to the downside. With the 200 day moving average at 1.21039 as a possible target going forward.
