GBPUSD (1.3843): The British pound was seen extending the gains for the third consecutive day although the momentum looks to be slowing in the near term. The brief weakness in the U.S. dollar alongside a better than expected services PMI helped to push the currency pair higher on the day. On the 4-hour chart, price action was seen retracing back to 1.3860 level which marks the 38.2% retracement level. A reversal at this level could see GBPUSD retesting the previous lows at 1.3734. To the upside, price will need to breakout above 1.3897 to shift the bias to the upside.
