At this point, seems nothing can save the Gbp. From the technical perspective, we have already been seeing chances of this recent rally to the downside, as is shameless breaking historical minimums, without even noticing they are there. And despite early today we have retail sales that showed an unexpected 0.6% rise, the preliminar GDP of the fourth quarter proved weaker than expected, contracting as far as 1.5%, confirming recession in the U.K. Reaction to fundamentals is always stronger when they support trend, and here we are, with Gbp/Jpy at 119.60 an all times low, and Gbp/Usd at 1.3560, and we have to move back to 1985 to see the pair in this zone. We could find further supports and the pair could continue moving down; indicators showing exhaustion to the downside should be ignored by this time. Although a more than important correction should develop soon enough, we will need some clear confirmations I can’t see right now.
For today, consider this supports zone 1.3500, 1.3440, 1.3385 and 1.3330; we also have a quite strong zone at 1.3270 and could be our final target for today. Regarding resistances above 1.3620 we have the strong zone @ 1.3680, above which we have 1.3730, the zone @ 1.3790, 1.3820 and then 1.3862.
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