Forex Flash: Sterling looks range bound between $1.52 and $1.54 – BBH

FXstreet.com (Barcelona) - After closing sharply lower last Friday on the UK credit rating downgrade by Fitch, the GBP/USD is starting the week off on a quiet note. According to Marc Chandler, Global Head of Currency strategy at BBH, “Sterling also looks range bound between $1.52 and $1.54. However, the tone is poorer and the 5-day moving average is set to cross below the 20-day in the days ahead for the first time since March 19, warning the 6-cent upside correction is may be ending.”

He went on to add, “a trend line off the March 12 and April 4 lows comes in near $1.5170 at the start of the new week and is near $1.5220 by the end of the week. At the same time, the $1.5190 area corresponds with a retracement objective of the entire correction.”