GBP/USD Continues Downward Trend

The GBP/USD is under pressure overnight after closing lower last week. While the Fed. and the ECB are gearing up to begin phasing out stimuli and raising interest rates, the U.K. is still struggling to emerge from its recession.

The current daily chart pattern is bearish now that a lower top has been formed at 1.6720. The main range is 1.5706 to 1.6878 with a retracement zone at 1.6292 to 1.6154. This zone is the next likely downside target. Additional support comes in at three main bottoms at 1.6271, 1.6261 and 1.6250. A trade through 1.6271 turns the main trend down. On December 10th, the Bank of England meets to discuss monetary policy. Look for interest rates to remain unchanged while the BoE leaves its asset buyback program intact.