The sterling inched lower after the NIESR GDP estimate for the past three months fell short of expectations.
The rally above the daily resistance at 1.3890 may have saved the pound’s 17-month long rally. Though the combination of overextension and lack of support in the short-term may prolong the retracement.
The RSI’s double-dip into the oversold area may lead to a limited rebound.
The bulls will need to lift 1.3890 in order to reverse gears. Otherwise, a breach below 1.3770 may send the pair to 1.3600.
