GBP appears headed for a test - BBH

Analysts at BBH note that sterling posted about a 0.3% decline last week, which snapped a six-week, 7.8% rally as disappointing UK economic data, more internal woes for the Tories, and a harder line from the EU provided the incentives for the mild profit-taking.

Key Quotes

“Still, the pound finished well above the week's lows near $1.3980 but appears headed for a test.  A break would initially target the $1.3800-$1.3900 area.   The RSI and Slow Stochastics are moving lower, and the MACDS are poised to cross in the coming days.”