GBP price action reinforces the significance of the $1.35 area cap - BBH

Research Team at BBH, notes that the apparent resilience of the UK economy, doubts in some quarters that Brexit will ever take place, and conviction that the BOE will not cut rates at this week's MPC meeting helped lift sterling through the August highs. 

Key Quotes

“It reached $1.3445 before finding new sellers. The price action reinforces the significance of the $1.35 area cap. Within the $1.30-$1.35 range that has dominated since the referendum, sterling may encounter initial support in the $1.3160-$1.3180 area. A month-long up trendline comes in near $1.3240 on September 16.  The technical indicators we use are mixed.  The RSI is heavy, and the MACDs have not crossed but are poised to, and the Slow Stochastics are still headed higher.”