The 60-minute GBP/USD had rallied higher through the 1.6300 level as the dollar fell but the pound sterling weakness - despite dollar pressure - has not been enough to keep the pair above the “00” level. The subsequent breakdown lower has triggered a near-term breakdown on the pair. There will no doubt be some gyrations between 1.6305 and 1.6290 as the battle for supremacy of the major psychological level is fought.

If the “00” does not accelerate a breakdown, be patient, there could be one last gasp from the cable towards previous resistance levels that can be faded (sold short). Prices could reach for 1.6500 again (or possibly higher towards weekly resistance and the 200 period SMA) however I still see the same scenario…the pair will be sold into on rallies.