GBP: Strongest of the major currencies - BBH

Research Team at BBH notes that the sterling is the strongest of the major currencies and having reached almost $1.26 today, it is at its best level since December 14, when the Fed hiked rates for the second time in the cycle.  

Key Quotes

“After an initial wobble, sterling recovered smartly after the Supreme Court's decision yesterday requiring a both chambers to vote on a bill to trigger Article 50.  The general sentiment appears to be that while different amendments will be submitted, the small Tory majority may be sufficient to frustrate the most dramatic proposals, such as having a second referendum on the entire deal.”  

“We anticipated that the court ruling would prove anti-climactic and that sterling was poised for additional near-term gains.  Yesterday's knee-jerk reaction saw sterling fall to test the trendline drawn off the early September and December highs, and the neckline of a possible head and shoulder bottom pattern (~$1.2425 and $1.2415 respectively) and recover to close on its highs.  Today, follow through buying has lifted it further.  The intraday technical readings are stretched.  A support band between $1.2500 and $1.2550 may be sufficient to deter sharper losses.”