I have been firmly in the anti-cable camp since the failure to break 1.6250 at the start of the year.
Yesterday, I wrote:
I see today’s price action as a standard bounce after a big drop. Expect it to extend further but it will be difficult to retake 1.5800.
GBP/USD has fallen in four consecutive weeks and I don’t see any reason why the trend shouldn’t continue.
The economy is weak and safe haven funds are flowing back into the eurozone. Moreover, speculators are positioned for gains, which means there is plenty of room on the downside.
Since the break of the 200-day moving average and 1.5800, support lines on the chart are minimal. Selling rallies down to 1.54/1.53 leaves plenty of opportunity to trade the downside.
In the short-term, there are strong bids rumored in the 1.5610/00 zone.