Currency - GBP / US Dollar

The attached chart show the overriding themes from a technical perspective. Having dropped below the 15month upward trend in June, the pound has spent the bulk of early August trying to get back into that upward trend channel but it has failed to do so. That can be taken as confirmation of the downward pressure and we may well see lower levels in the weeks ahead. Support can be found on the short term downward trend line at 1.6060 and at the 23.6% Fibonacci retracement line at 1.6146. If these break then we are heading for the 38.2% Fibonacci level at 1.5780 (where support was seen on the dip in July) and a drop to 1.5485 would complete the correction based on the head and shoulders pattern seen between March and June.
If the Pound does though manage to press above 1.65 trend line, then the upward momentum will re-establish itself and the whole pattern changes. That has to be the less likely scenario at the moment though