Sterling was the winner last week, rallying to two month highs - BBH
|Analysts at Brown Brothers Harriman explained that Sterling was the big winner of the week.
Key Quotes:
"It rallied to two-month highs on the back of optimism that a deal would be struck shortly to allow the next phase of Brexit negotiations to proceed. The Irish border issue, however, has not been resolved and this sapped the upside momentum ahead of the weekend. Still, it was the third week in four that sterling gained almost 1.0%.
Sterling's technical condition is a bit stretched after rallying a nickel since the middle of November. It closed above its upper Bollinger Band in the last two sessions before the weekend. The Slow Stochastics are set to turn lower, though the MACDs are still trending higher.
Initial support is seen near $1.3425-$1.3450 and then $1.3380. A break below $1.3350 would boost the chances a high is in place. Sterling had flirted with the $1.36 area around the middle of September, and even rose to nearly $1.3660, but did not close above $1.3600. That area continues to offer resistance, though the Fibonacci retracement (61.8%) of the drop after last year's referendum is found near $.1.38."
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