• GBP/USD bears stay in charge and eye the edge of the abyss.
• The pound will depend on the US dollar moving towards a monthly target. 

GBPUSD fell as the US dollar surged to a fresh two-decade high on Wednesday after the Federal Reserve raised interest rates by another 75 basis points and signaled more large increases at its upcoming meetings. This has pushed GBP to the edge of the abyss on a longer-term chart view as the following illustrates:

GBPUSD daily, monthly, hourly chart

There really is very little structure to go on at this juncture. Either the bulls commit to the strong dollar and tip the pound over the 1.1240s or we will see a move back into a consolidation ahead of the Bank of England. 

DXY monthly chart

The US dollar is embarking on the 112.27 monthly target as illustrated above.