The pair remains vulnerable to the downside following its gap lower on Monday. As long as that gap remains unclosed and GBP continues to trade below the 1.5863 level, we look for the pair to decline further. In such a case, the 1.5633 level, its Sept 19'2011 low will be targeted initially with a violation of there calling for a move further lower towards the 1.5600 level and its major support located at the 1.5480 level, its .50 Fib Ret(1.4229-1.6743 rally). Its daily RSI is bearish and pointing lower suggesting further weakness. Alternatively, above the 1.5870 level, its Sept 13'2011 high will have to occur to trigger a recovery higher towards the 1.5995 level. A cap is expected to occur here and turn the pair back lower. All in all, GBP remains susceptible to the downside on further weakness.

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