GBP/USD Forex Signal: More Downside After Bearish Breakout

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GBP/USD Forex Signal: More Downside After Bearish Breakout
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The GBP/USD pair made a strong bearish breakout last week even after the Bank of England decided to hike interest rates by 0.50%. This was the biggest rate hike since 1994 and is a sign that the bank is committed to continuing with its battle against inflation.

The GBP/USD pair also dropped after Nancy Pelosi’s trip to Taiwan. Shortly after the trip, China started drills on how it will finally attack Taiwan. These drills continued during the weekend and analysts believe that China will likely accelerate its invasion plans. The unemployment rate dropped to 3.5% while the participation rate continued rising. Notably, wages continued rising in July even though they are growing at a slower pace than inflation. Therefore, these numbers will likely put pressure on the Federal Reserve to continue tightening.

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