GBP: Technical indicators suggest another attempt higher is likely - BBH

Analysts at BBH note that owing largely it seems to the issues surrounding Brexit, sterling marched to a different beat in the previous week. 

Key Quotes

“It gapped lower to start the week and rallied strongly on January 17.  It consolidated since, finding support near the 20-day moving average near $1.2260.  The technical indicators suggest another attempt higher is likely, perhaps in response to the Supreme Court decision expected early in the week ahead.  The downtrend line connecting the early September high and the highs from the first of December is found near $1.2440 at the start of next week and finishes the week near $1.2400.  Another nearby target could be the 61.8% retracement of the fall since the December 6 high near $1.2775.”