Sterling: one of the weakest majors; sits at 200 DMA – BBH

By FXStreet FXStreet (Guatemala) – Analysts at Brown Brothers Harriman noted that after the yen, sterling was the weakest of the majors, appreciating almost 0.9% against the US dollar.

Note: GBP/USD: spot 1.5317 and 200 DMA 1.5319 at time of writing.

Key Quotes:

“Sterling has been particularly streaky lately. The most recent streak is up. It can be illustrated by the fact that it has recorded higher lows and higher highs for six consecutive sessions. We are less sanguine. Sterling remains well below the same trendline we saw in the euro and the Dollar Index (drawn off the August 25 and September 18 high). It is found near $1.5500 at the end of next week.

Sterling tested a key chart point before the weekend, and this stymied the upside momentum. The $1.5380 area corresponds to a 38.2% retracement of down move since August 25, and to the 50% retracement of the decline since September 18. A move above there could spur a move to $1.5465 and maybe close to the trendline. Support is likely to be seen in the $1.5230-$1.5260 area.”
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Source:: FX Street