The breakdown of the long term uptrend from the early 2009 lows in February of this year, nevertheless suggests that further downside might be inevitable for the pound. The breach of the narrowing range at the 1.5660 area is pivotal and is the key resistance to any real GBP strength, barring a complete and utter catastrophe in the Eurozone.
Over the past 2 days, this bullish channel has given way and price action has declined further and should the lows of 2012 at 1.5236 fail to hold the current trend looks set to target the 23.6% Fib. retracement around the 1.52 level.
The price is moving inside the channel and currently we are seeing price fluctuations inside the range of the ab=cd pattern. By having supply pressure fueled up in the market the ground for a drop in the price will be prepared.