14 Mar 2016
UK: Sterling is poised for more gains - BBH
Research Team at BBH, suggests that the sterling is poised for more gains in the week ahead as it continues to recoup the initial Brexit-inspired losses.
Key Quotes
“Before the weekend it was trading at its best level since February 19. It broke the downtrend drawn off the February 4 high with two successive closes above it to end the week. The technical indicators are constructive. Sterling can test $1.4500-$1.4540 in the days ahead. Support is seen ahead of $1.4250.
Sterling looks set to recover the losses it has suffered at the hands of the euro in recent months. The euro looks to have carved out a head and shoulders pattern against sterling, with the right shoulder sculpted by the price action in last couple of sessions. The neckline is near GBP0.7650, the measuring objective suggests a move toward the 61.8% retracement of the euro's gains since November, found near GBP0.7345.”
Key Quotes
“Before the weekend it was trading at its best level since February 19. It broke the downtrend drawn off the February 4 high with two successive closes above it to end the week. The technical indicators are constructive. Sterling can test $1.4500-$1.4540 in the days ahead. Support is seen ahead of $1.4250.
Sterling looks set to recover the losses it has suffered at the hands of the euro in recent months. The euro looks to have carved out a head and shoulders pattern against sterling, with the right shoulder sculpted by the price action in last couple of sessions. The neckline is near GBP0.7650, the measuring objective suggests a move toward the 61.8% retracement of the euro's gains since November, found near GBP0.7345.”