• GBP/USD has gauged an intermediate cushion around 1.2330, still, further downside is on cards.
• Federal Reserve is expected to announce a smaller interest rate hike by 25 bps to the 4.50-4.75% range.
• A continuation of a bumper interest rate hike is expected from the Bank of England to contain stubborn inflation.
• GBP/USD is testing the strength of the downside break of the Descending Triangle.

GBP/USD has gauged intermediate support around 1.2330 after a vertical decline move in the early European session. The further downside in the Cable is still favored as the risk-off impulse is strengthening vigorously. Investors are dumping the risk-perceived assets amid rising volatility ahead of the interest rate decision by the Federal Reserve (Fed), scheduled for Wednesday. Also, the Bank of England (BoE) is going to announce its first monetary policy on Thursday.

United States equities are facing immense as investors are expecting that further interest rate hike by the Federal Reserve will escalate recession fears. S&P500 futures have turned negative after surrendering morning gains in no time. Also, the 500-stock basket futures ended Monday’s trading session on a weaker note, which indicates sheer pessimism among the market participants. Contrary to the USD Index, the alpha on US government bonds is displaying a subdued performance. The 10-year US Treasury yields are hovering around 3.54%.