NEW YORK (TheStreet) -- In our recent discussion of the British pound to U.S. dollar exchange rate or the GBP/USD, we talked about an inside bar signal from Sept. 24 and the potential for the recent downtrend to resume from it.

An inside bar signal is a price action pattern consisting of a "mother bar" and then a subsequent bar or bars that are completely contained within the mother bar's high-to-low range.

We can see in the chart below that last week's price broke down from this inside bar sell signal, and bearish momentum appears to have taken back over this market. We are looking at the low near 1.6050 as a potential first target area, which was the low or support level from Sept. 10, in this market this week.

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