The sterling fell back after the UK’s GDP contracted more than expected in Q1. Indeed, the pair is now back to square one after it gave up gains from the previous rebound.
The psychological level of 1.4000 has been a tough resistance to crack. The lack of momentum suggests that sentiment remains downbeat. The pair is retesting 1.3790, key support from the daily timeframe.
A bearish breakout would trigger a new round of sell-off to 1.3700. On the upside, recovery may be choppy with 1.3940 as the first resistance to lift.
