Fundamentals:
With UK economy showing all the signs of deflationary mechanics with no end in sight, the US economy providing a more stable reference point and Chinese demand confirmed to have slowed down significantly, GBPUSD still poses a bearish outlook irrespective of what the US FED reserve chooses to do next week. A flat or worse than expected manufacturing data and a bad trade balance reading tomorrow will exacerbate the bearish outlook.
Technicals:
Our position still remains bearish for this pair as long as 1.55620 resistance holds and current price action is seen as a correction following what appeared to be an over extended first leg down. Our expectation is for the 1.53865/1.53997 resistance zone to to hold current retracement. Break or price close of that zone could target 1.55620 after which resumption of the downtrend should start.