GBPUSD (1.3552): The British pound was seen trading subdued with price action seen testing the support level at 1.3530 on Friday. In the near term, we expect the GBPUSD to continue to consolidate around this level heading into Thursday’s Bank of England meeting. There is scope for the GBPUSD to correct to the upside as the 4-hour Stochastics oscillator points to a bullish divergence. The initial target is likely to be the resistance level which could act as dynamic resistance to the upside. To the downside, a break down below 1.3530 could signal a decline to 1.3500 round number support.
