Watch the GBP0.8470 area for the euro - BBH

Analysts at Brown Brothers Harriman noted that Sterling was the best performing major currency last week, which entailed rising less than 0.2% against the rising dollar.  

Key Quotes:

"Prime Minister May is expected to trigger Article 50 at the EU summit in early March. As the details of the radical surgery are negotiated, there may be headline risk from time-to-time, but it may be superseded in the short-term by a macroeconomics, the focus on EMU politics, and the general dollar direction.   

The US rate premium over the UK has begun growing again, and this may also weigh on sterling. However, sterling is resilient against the dollar, and we suspect it comes from the demand against the euro. Sterling held the 50% retracement level near $1.2345 last Tuesday, and although the upside momentum faded, the underlying tone remains firm. Initial resistance may be near $1.2530, but the $1.2570-$1.2600 may be a stronger cap.   

Watch the GBP0.8470 area for the euro. It appears to correspond to a neckline of some topping pattern. It valid pattern and the neckline is successfully penetrated, the measuring objective is below GBP0.8100. Moreover, the charts suggest some risk that if/when the break comes, it could accelerate quickly."