GBP/USD Price Analysis: Bears pounce on the bulls and drag them back to channel support

• GBP/USD falls on the back of hawkish comments from Powell.
• The US dollar is back in the driving seat and cable is meeting channel support. 

Risk markets were whipsawed around the FOMC event on Wednesday when the Federal Reserve statement was written with dovish rhetoric while the Chair’s presser started out and ended with a hawkish tilt. 

His hawkish comments wiped out almost 100% of the FOMC dovish statement drop in the US dollar:

GBP/USD H1 chart

The price has dropped into the channel’s support following Powell’s pushback against rallying risk markets when pressed for commentary around the timings of a pivot. However, on a break of support, there is a void of liquidity according to the rally that took place on October 25. 

Given the timings of the day, the most likely trajectory from here would be for a correction prior to the next impulse to the downside: