GBP/USD forecast for the week of October 6, 2014, Technical Analysis

The GBP/USD pair initially tried to rally during the course of the week, but then fell hard. We ultimately broke down below the bottom of the 1.60 handle, and as a result it looks like we are testing serious support levels right now. The British pound continues to suffer overall, and we believe that if we can break down below the 1.58 level, we should then head to the 1.55 handle next. Any rally at this point time will be treated with suspicion, and we believe the sellers will get involved when those happen.