GBP: Another leg higher - BBH

Analysts at BBH explain that after consolidating the gains scored in the wake of Prime Minister May's surprise election, sterling took another leg higher in recent days to approach the $1.30.  

Key Quotes

“The $1.3055 area corresponds to the 38.2% retracement of sterling drop from the pre-referendum high to last October's low.  It goes into the May 1 bank holiday with a four session advancing streak.  It has risen in four sessions in each of the past three weeks and is up in six of the past seven weeks.   While sterling can have another push higher, the technical indicators are warning that a top may be near.  The Slow Stochastics are flat lining before turning down, and the MACD's are poised to cross lower in the coming days.  Support is seen in the $1.2850-$1.2870 area.”