After having registered small daily gains on Thursday, GBP/USD has reversed its direction. A break under 1.1730 is a distinct possibility if the dollar strengthens following today's speech by Jerome Powell in Jackson Hole.

All eyes on Powell's speech at Jackson Hole Symposium

“Cable should move mostly in line with the dollar reaction to Jackson Hole. A break below the 1.1730 lows from earlier this week may well be on the cards on the back of USD strengthening, as 1.1500 (the 2020 flash crash bottom) is no longer looking like a remote possibility.”

“It will be interesting to see EUR/GBP reaction to today’s speech by Powell. We could see a small recovery in the pair in a hawkish scenario where risk sentiment is hit, considering GBP is normally more sensitive to global risk moves, but the low appetite for EUR longs should keep a cap on the pair for now.”