GBP could find support and try the highs again - BBH

The BOE's apparent hawkishness on September 14 spurred a rally in sterling from roughly $1.3155 to $1.3655 and since then sterling has slipped to back to $1.3350 in a flag pattern, which corresponds to a 61.8% retracement of the pole and just above the 20-day moving average (~$1.3335), notes the analysis team at BBH.  

Key Quotes

“The  38.2% retracement of the rally from the August 24 low is found a little lower at $1.3320.  Sterling could find support in this area and try the highs again, especially if the PMIs surprise on the upside.  The five-day moving average is still above the 20-day average, and the weekly technical indicators are not as dollar-friendly as they are for the euro and yen.”