GBP: Break of $1.2080 would be significant - BBH

Research Team at BBH, suggests that the UK Prime Minister May may not be able to sell a hard Brexit to the House of Commons or a soft Brexit to other EU countries. 

Key Quotes

“Sterling suffers, and its weakness is no longer taking place as interest rates fall and stocks outperform.  After the flash crash, sterling spent the week largely consolidating around the middle of the flash crash range.  The spring is coiling.  Wednesday's range was within Tuesday's.  Thursday's range was within Wednesday's range.  Friday's range was within Thursday's.  Often this pattern is a continuation pattern.  A break of $1.2080 would be significant.  On the other hand, a High Court ruling giving Parliament the right to vote on May's Brexit strategy could see a bout of short-covering.  A move above $1.2375 is needed to signify anything of technical importance.”