4H and 1H: The attempt to invalidate the short-term bearish outlook failed as 1.6700 held. (Refer to Daiy Technical Update 12.02.2009 GBP/USD.)
In the 4H time-frame, we may have a trigger developing but it would give us poor reward to risk ratio using the ATR in this time-frame. Reminder that the GBP/USD has been choppy within a ranging mode, so targets should be limited to more conservative ones.
We see that the 1.6250-1.6270 area is a viable target, but perhaps since it is a very short-term projection, a 1H time-frame can be used to assess the setup.
In the 1H time-frame we see a completed double top. The short-term support at 1.6625 has broken, but the stochastic is oversold and there may be some support at the 1.6550 area. This suggests timing may be wrong for these signals.
Nonetheless, the above screenshot shows the reward to risk ratio is 1.6:1, if this double top formation were to be trigger. The ratio may be improved if we are patient and wait for a correction rally to establish a lower powerline than the 1.6700 we used above to define the stop-loss level.