Cable is breaking down hard after British finance minister Kwasi Kwarteng's announced tax cuts on energies. The plan is for households to save some money and to expand the supply side of the economy, but investors seem pessimistic about that, at least for the short-term period.
We see cable coming down hard, but price is moving into 1985 low with a potential throw-over formation with the current wedge pattern, so from a long-term perspective, the multiyear support may not be far away.
We will see what will the BoE response, but intervention or hawkish view can try to be supportive for the pound. Traders are already pricing 200bp of BOE hike by November this year.