Forex Flash: Sterling stability dashed after PMIs - BBH

Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes that the attempt for sterling to stabilize following the recent loss of the UK´s AAA rating was dashed after the dismal PMI reading.

He writes, “Sterling was pushed briefly below $1.50 for the first time since July 2010. The next technical objective is near $1.4855, which corresponds to a retracement objective of the rally from $1.35 in early 2009. Previous support in the $1.5250 area should now act as resistance.“