The Cable (GBPUSD) has just broken down from what appears to be a complex head and shoulders formation. If you look at the chart that I posted, the next obvious level of support for the pair would be at 1.4800. The pair, though, could retrace a bit before heading south given its oversold conditions. Nonetheless, the bias remains to be bearish due to the market’s present negative sentiment.
On the economic front, European Central Bank President Jean-Claude Trichet recently resisted to purchase Greece’s bonds. Rather, he insisted that Greece should focus more on cutting their deficit levels. This, of course, caused the anti-dollars like the euro and the pound to sink some more. If the EBC and the other EU-member nations fail to find a solution to the euro zone’s, particularly Greece’s debt crisis, we could see some more panic selling on the likes of the euro and the pound.