GBP/USD continues to lose ground in Asian trading on Wednesday, trading as low as 1.6415 with Tuesday's rally to fresh highs for the year at 1.6745 proving to be a mere aberration with sterling returning to the recent 1.6200-1.6600 trading range, with sterling sold sharply lower after the worst GDP data in 50 years. The UK newspapers for Wednesday are now full of gloomy outlooks for the UK noting warnings of a double dip in the UK economy and increased fears for a recovery. HSBC boss Stephen Green warns that the financial and economic crisis is far from over, adding to the gloomy mood. The sharp rejection of the latest highs, risks a further pullback to 1.6200 in cable in coming sessions. Sellers are emerging as close as 1.6460/70 now on sterling with more offers tipped around 1.6500/10.
