GBP/USD: largest drop in 2-months - BBH

Analysts at Brown Brothers Harriman explained that Sterling had been holding a gradual uptrend over the past month.  

Key Quotes:

"We had thought that the covering of stale shorts would allow it to continue to post modest upticks.  There was scope toward the upper end of its post-referendum range closer to $1.35.  Yet the pre-weekend sell-off that saw sterling at $1.30 instead showed the fragility of sentiment.   It was the largest drop in two months.  

Sterling's technical tone is poor.  The RSI and MACDs have turned down, while a bearish divergence is evident in the Slow Stochastics.  The 5-day average is easing below the 20-day average.  A break of $1.30 would target last month's low near $1.2865.  The only note of caution comes from the close below the lower Bollinger Band (~$1.3020)."