GBPUSD (1.3876): The British pound has been extending declines over the past few daily sessions. Price action closed with an inside bar yesterday but further downside is expected. Following the breakdown below the support level at 1.4037, we expect to see a retracement to this level in the short term. If price action can establish resistance at this level, we could expect to see further declines pushing the GBPUSD down to the support at 1.3617 which is pending retest. To the upside, in the event that GBPUSD breaks past 1.4037, the downside bias is invalidated.
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