|

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."

Author

Ross J Burland

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

More from Ross J Burland
Share:

Editor's Picks

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.
 

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.

How AI, blockchain, stablecoins are shaping a new global economy – Circle CEO Jeremy Allaire

Artificial Intelligence (AI), blockchain technology and stablecoins are emerging as core pillars of a new global economic system, according to Circle’s CEO, Jeremy Allaire.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Bitcoin steadies as traders eye US–Iran talks

Bitcoin (BTC) price is stabilizing around $68,000 at the time of writing on Thursday after a 6.2% relief rally the previous day amid a broader downward trend.