FXstreet.com (Barcelona) - The GBP/USD has dropped below 1.5980 and set a new low not seen since Dec. 30 after its attempted recovery effort was rejected at 1.6048 earlier in today's European session.

The pair is down over 180 pips on the day and is currently trading at 1.5975 area with its bearish momentum being spurned on by Chancellor of the Exchequer Alistair Darling expressing his concerns over the UK's budget deficit.

According to the Kshitij Consultancy Service, with the 1.5980 barrier broken, a fall towards the 55-week MA looks very likely and, from there, we might have to study for an even further fall on a confirmation of the double top formation on the weekly charts.