GBP/USD: More bearish signals below 1.4120 – BBH

By FXStreet According to analysts from Brown Brother Harriman, if GBP/USD breaks below 1.4120 it could slide further to 1.4000 – 1.4050.

Key Quotes:

“Sterling peaked in July 2014 near $1.72. By March 2015, it had fallen to near $1.45. It recovered in Q2 15 to almost $1.60. It has been trending lower since, first as the market pushed out expectations for the BOE’s first rate hike and then on Brexit fears.”

“ The risk that the UK would leave the EU saw sterling tumble to near $1.3825 at the end of February. A short-covering bounce saw it peak above $1.4430 at the end of last week. This counter-trend advance was about the same magnitude as the move from mid-January through early February. “

“In the past two sessions, sterling has retraced 50% of its corrective upticks (at ~$1.4140), which also corresponds to the 20-day moving average (~$1.4155). A break of $1.4120, last week’s lows, signal a move toward the $1.4000-$1.4050 area.”
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Source:: FX Street