GBPUSD (1.3780): The British pound posted strong losses on the day on Friday following a weaker than expected preliminary GDP report and a stronger than expected GDP data from the United States. The breakout below the 1.3900 level of support pushed the pound sterling lower to test weekly lows of 1.3770, briefly falling below lows from 8th March. In the near term, we expect price action to post a modest recovery. Any gains are likely to be limited to the 1.3900 level where resistance could be established. This is validated by the hidden bullish divergence seen on the 4-hour Stochastics indicator.
