GBPUSD remains in downtrend from 1.7190 (Jul 15 high), the bounce from 1.6536 is likely consolidation of the downtrend.

Resistance is located at the downward trend line on 4-hour chart.

As long as the trend line resistance holds, the downtrend could be expected to resume, and next target would be at 1.6400 area.

Only a clear break above the trend line resistance could signal completion of the downtrend.

 Editor’s Note: Equity investors/traders can use the Currency Shares British Pound Sterling Trust (FXB, quote) ETF to take positions in the yen without a FOREX account.  The ETF looks to track the price of the British Pound Sterling (GBPUSD), minus ETF fee. The fund seeks to reflect the price of the British Pound Sterling (GBPUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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