The GBP/USD dived in today's session which corresponded well to another sharp swing down at the end of last week. Looking at the daily chart, it begs the question, do we have a reversal/topping pattern upon us and a further retrace to come? The important level to watch would be the 1.5885 area which is a pivot established in the middle of September. However, the pair may need to first move higher, to resolve any oversold condition in the short-term, perhaps up to the 1.6020 area.A break there would open up a further retrace towards 1.5720, the old resistance level prior to the run-up in anticipation of the FOMC meeting. There were some weak macro data from the UK to act as a catalyst, so this could be an over-reaction, but we could also have seen a peak to the positive surprises from the UK economy and as a result, GBP weakness may linger. This is especially true if the USD becomes a target for safe haven flows, which so far it has not been, but we started to see some of that as the debt ceiling date gets closer. - Nick