The British pound remained one of the weakest major currencies as GBPUSD broke below a rising trendline connecting the June and July lows, leaving the door open to further declines. Meanwhile, GBPJPY also experienced a steep drop, but failed to break below the July 17 and July 22 lows of 152.31/39, but based on the GBPUSD decline, there is potential for the JPY cross to follow suit. As mentioned in recent days, the macroeconomic outlook for the nation remains bleak, especially after traders learned last week that the UK government posted a deficit of 8 billion pounds in July, the biggest since recordkeeping began in 1993, highlighting the dour state of the nation’s finances. Standard & Poor’s lowered its outlook on the UK’s AAA credit rating to “negative” from “stable” in May for this very reason, and if we see this trend continue, the risk for an actual downgrade will grow and put greater pressure on the British pound.