GBPUSD W1 21-09

The reaction to Putin's announcement is starting to see more notable moves, with some stops perhaps being triggered as cable falls to 1.1304 - its lowest level since March 1985 - to start European morning trade. It was a quick drop as the pair breached 1.1350 to hit a low of 1.1304 within a span of minutes.

We are seeing a light bounce back to 1.1330 now but it looks like sellers aren't waiting around for the Fed and are looking to make a play, chasing the next downside leg in the pair.

I don't want to go off ranting about how the pair still needs relative confirmation from a more hawkish Fed to really seal a breakthrough but a clean technical break here leaves little in the way of a steeper drop - at least from a technical predicament.

One can expect talks of a push towards parity to seep in with maybe 1.1000 and 1.0500 being key psychological levels to point towards for any relief next.