GBP: Technical indicators are extended - BBH

Sterling reached $1.4345, the highest level since the UK referendum in the middle of last year and finished last year near $1.35, points out the research team at BBH.

Key Quotes

“The technical indicators are extended and the Slow Stochastic is trying to turn lower.   Sterling has not taken out the previous day's low since January 11.  A break of such on an intraday basis, and ideally a close below the five-day moving average, which has not happened since the same day (January 11) could be preliminary signs the correction is at hand.  On the upside, $1.45 is seen as the next target.”