GBP experienced downside pressure as risk appetite waned on Monday. Cable fell in Asia and saw good selling early on in the European session to trade at 1.6222 lows, which provided support for EUR-GBP and it traded in to the 0.8600 region. U.K. PM Brown warned that the recession may get worse and the Times business section reported that the BoE is expected to extend its QE program by GBP 25 bln, although there are doubts whether it will take action beyond that. There were rumors last Friday that it could raise QE by another GBP 25 bln, although speculation is usual in to the BoE meeting and also falls in line with the Times Shadow MPC, which is calling for the Bank to extend the size of its Asset Purchase Scheme. Elsewhere, trend watchers are hopeful that Cable can sustain a move lower after it took out early support around 1.6250, which sees 1.6000 as a viable target once the market works off oversold indicators. Stop losses are likely below 1.6200 and 1.6180, while EUR-GBP has scope to retest July 2 highs of 0.8630.