Rabobank - "So what does the future hold for GBP now? Clearly it has got off to a bad start in 2013 and it is only natural some are now saying it is oversold – a look at the daily RSI supports this view, although the weekly RSI is not yet in oversold territory. As we noted on Monday, GBP CFTC positioning has plunged into negative territory and net short positioning is at its strongest since June 2012. Although these factors may suggest a pullback could be forthcoming, the age old adage, ‘the trend is your friend’ is also valid and we suspect GBP’s role as a funding currency is increasing. Without wanting to use to many clichés, ‘trying to catch a falling knife’ is a dangerous game and for now, we would argue, that trying to take a long GBP position is a very dangerous game. In terms of levels, GBP/USD has fallen through the closely watched 1.5360/70 region and now the 1st June 2012 low of 1.5269 comes into sight. We looked at GBP/SEK at the end of last month and highlighted that a potential break below the 29th November low of 10.0053 and the 3rd May 2011 of 9.9402 could send the pair into freefall down to the 9th November 1992 low of 9.0063. The pair currently stands at around 9.63 and there is little in the way of key technical levels to support it on the downside."