GBP/USD was actively declining during the whole Asian session on Wednesday, but with the Europeans coming to the market the buyers gained a slight advantage.
The day before in the United States there were released several economic indicators. The ISM service sector business activity index showed a gain from 56.7 to 56.9 ppt and the employment index rose from 49.1 to 50.2 ppt. The reports confirmed the steady growth of the US economy, which once again increased the likelihood of the Fed rate hike in September by 75 basis points, not 50.
Today, the Bank of England governor Andrew Bailey is scheduled to speak.
The market continues to discuss the victory of the Conservative Party representative Liz Truss in the elections of the British Prime Minister. The new Cabinet of Ministers in addition to the problems of the national economy was given the controversial issues on Brexit, as well as an increase in geopolitical tensions against the background of Russian military aggression in Ukraine. Due to the sharp rise in energy prices, analysts forecast a 22.0% increase in consumer prices in the UK.
The Bollinger Band indicator on the daily chart is confidently indicating a decline.
MACD indicator is declining in the negative range and keeps the signal to sell.
The oscillator stochastic broke through the 20% level from below, came out of the oversold area and continues to grow.
A strong break-down of 1.1442 will be a signal for continuation of sales with Take Profit at 1.1300. Stop-loss is set at 1.1510.
In case the price gets above 1.1531, small volume purchases may be done as intraday trading with the nearest target at 1.1700. Protective stop is set at 1.1442.