GBP extended overnight losses amid Eastern European selling via Cable and good speculative interest via GBPJPY. The uncertainty surrounding the U.S.bailout plans has see a pick up in risk aversion, which is weighing heavily on speculative positioning and carry trades. Cable shorts are expected to book profits ahead of 1.8300, where the pair based on Thursday amid heavy selling by a U.K. clearer. A move below 1.8300 would open up the downside to 1.8280, which is the 10-day moving average. However, dollar buying is expected to be tempered as the protracted negotiations over the U.S. bailout encourage dollar unwinding by short term accounts that got themselves long in yesterday’s N.Y. afternoon. Meanwhile, EURGBP is stable around 0.7950 after it posted a good short covering rally on Thursday after the market was caught short in to 0.7900.