GBP/USD intraday rallies seen limited around 1.3900/70 – Commerzbank

The Sterling remains under pressure while occasional bullish attempts in Cable should face tough resistance in the 1.3900/70 band.

Key Quotes

“GBP/USD sold off sharply after poor GDP Q1 growth numbers came out on Friday. It is approaching the 1.3712 March low and the 1.3694/58 September peak and 2016-2018 uptrend. Intraday rallies are indicated to terminate circa 1.3900/70 and we have 13 counts on the intraday charts. We would allow for some near term profit taking and as a precaution will cover the short positions for now”.

“Rallies are likely to remain capped by the 55 day ma at 1.4008”.

“A daily close above 1.4377 will negate our negative bias (not favaoured)”.