GBP/USD Price Analysis: Bears pounce on the bulls and drag them back to channel support

GBP/USD falls on the back of hawkish comments from Powell.
The US dollar is back in the driving seat and cable is meeting channel support.

Ross J Burland FXStreet

Risk markets were whipsawed around the FOMC event on Wednesday when the Federal Reserve statement was written with dovish rhetoric while the Chair's presser started out and ended with a hawkish tilt.

His hawkish comments wiped out almost 100% of the FOMC dovish statement drop in the US dollar:

GBP/USD H1 chart

The price has dropped into the channel's support following Powell's pushback against rallying risk markets when pressed for commentary around the timings of a pivot. However, on a break of support, there is a void of liquidity according to the rally that took place on October 25.

Given the timings of the day, the most likely trajectory from here would be for a correction prior to the next impulse to the downside:

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD extends losses toward 1.3200 on persistent USD strength

GBP/USD loses further ground toward 1.3200 in the second half of the day on Tuesday. Political uncertainty in the United Kingdom weighs on the British Pound, alongside weak business PMI data for June. Meanwhile, the US Dollar capitalizes on the risk-off mood and hawkish Fed bets ahead of the US PMI release.

EUR/USD falls to fresh 12-month low below 1.1400

EUR/USD comes under renewed selling pressure in the second half of the day on Tuesda and trades at its lowest level since June 2025 below 1.1400. Mixed PMI data from Germany and the Eurozone makes it difficult for the Euro to find demand, while the risk-averse market atmosphere supports the USD, forcing the pair to stay on the back foot. Traders now await the US PMI data.

Gold drops to nearly two-week low, tests $4,100

Gold (XAU/USD) turns south following Monday's rebound and trades deep in the red near $4,100 on Tuesday. Despite positive signals from US-Iran peace talks, widespread skepticism remains toward a final deal and weighs on the precious metal. In the meantime, the USD gathers strength on hawkish Fed expectations and drags XAU/USD lower.

Dogecoin risks fresh yearly lows as bears tighten grip

Dogecoin (DOGE) remains under pressure, trading below $0.09 after failing to break above a key resistance zone, and losing more than 7% last week. Weakening institutional interest, declining social dominance and a rise in bearish derivatives positioning continue to weigh on DOGE. In addition, deteriorating momentum indicators suggest the meme coin risks a deeper correction.

US S&P Global PMI expected to show steady business growth in June

S&P Global will release the June flash Purchasing Managers' Indices for most major economies, with the United States data scheduled on Tuesday. These surveys of top private-sector executives are seen as an early indicator of the country’s economic health.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.