GBP: Technical indicators favor additional losses – BBH

A hawkish hold by the Bank of England excited short-term market participant who bid sterling through $1.4050 but, the gains were short-lived and sterling finished near 1.5 cents below that intrasession high, explains Marc Chandler, Global Head of Currency Strategy at BBH.

Key Quotes

“Sterling made new lows for the week ahead of the weekend as the EU negotiator Barnier warned of the risk that there was no transition period.  Separately, a meeting between the EU and UK negotiators that was scheduled before the weekend was canceled due to a schedule conflict for UK team.  Sterling pushed through support seen near $1.3800, though closed back above it. The next level of support is not seen for another cent.  The technical indicators favor additional sterling losses and the five and 20-day moving averages cross to the downside.”