(Expanded view http://i58.tinypic.com/2mwzc6v.jpg)
Well, after bouncing off the Fibs at 1.6409 and 1.6284 the BEARS won out in the end and forced the break south.
Its clear from this move that all the positive impetus gained from the Scottish NO vote has left the market and GBP has resumed its decline but I suspect this may not be for long.
The most likely area GBP/USD is headed over the next 24 hours is 1.6160 ( 1.6238 at time of writing).
This is a very strong triple support area (WS1, 23.6 Fibonacci, September 16 low).
Harmonic theory would suggest that the flock will target this area and we can expect to see a significant bounce if 1.6160 is reached.
1.6232 may offer some support for GBP/USD LONGS but if this level fails then it may be possible to SHORT GBP/USD from 1.6230 with a 1.6250 STOP.
I shall watch the 1m chart over the next half hour in the absence of news and look to SHORT GBP/USD.
No particularly significant direct GBP news out in the first part of this week apart from Current Account at 09:30 GMT Tuesday but the PMI numbers are due Wednesday Thursday & Friday and of course the big one on Friday - Non-Farm Employment Change and Unemployment Rate which could set GBP’s direction for the foreseeable future.
More on these events in due course.