GBP: Mixed sentiment - BBH

Sterling reached almost $1.2980 yesterday before reversing lower and settled on its lows near $1.2915 while the selling pressure brought it briefly below $1.29 in early European activity, notes the analysis team at BBH.  

Key Quotes

“It has since rebounded toward session highs near $1.2940.  Part of the overcrowded euro trade was expressed against sterling, and sterling is recovering a bit on the cross after the poked through GBP0.9300 yesterday.  Initial support is seen near GBP0.9230.  There is a GBP225 mln option struck at $1.29 that expires today.”