GBPUSD plunges below 1.13

The British pound depreciated more than 1.5% to below $1.13 from a three-week high of $1.15, after PM Liz Truss said the Conservative party will always be the party of low taxes, reiterating plans to cut taxes to stimulate growth. Also geopolitical concerns are on the rise following recent comments from Putin, while fresh ADP and ISM Services data turned out to be better than expected, diminishing  hopes for FED pivot, which in turn strengthens US dollar. From technical point of view,  GBPUSD pair is testing major support around 1.1250, which coincides with EMA 100 an d23.6% Fibonacci retracement of the last upward wave. Should break lower occur, next support to watch lies around 1.1110.

GBPUSD, H1 interval. Source: xStation5