Powell testified before Congress and again noted that inflation went higher as expected which makes you think they may tapper soon, but then you have employment issues where the goal is still not met. So, we think that key will be again to observe the jobs numbers, but not this Friday, Oct 1st. US NFP are on Oct 08. We have seen a sharp breakdown on GBP yesterday, a move that may try to stabilize today during the BOE Bailey speech. Technically cable is in a downtrend with room for more weakness while pair trades below 1.3655.
As per Elliott Wave analysis, Cable GBPUSD is trading south, breaking some important supports following panic on gas stations in UK where drivers are rushing to gas stations to full up the fuel.
Pair is coming below 1.3570 support on the 4h chart, so looks like alternate count is in play now: a complex and deeper wave IV with sub-wave C coming out of a triangle. Support is at 1.3470 followed by 1.3350.
GBPUSD 4h Elliott Wave Analysis
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