GBP: Technical indicators not particularly strong - BBH

Sterling climbed to new post-referendum highs last week, but the technical indicators are not particularly strong, and the Slow Stochastic has not confirmed sterling's rise, according to analysts at BBH.  

Key Quotes

“Sterling has been alternating between advancing and declining weeks since early May.  This past week sterling advanced around 0.8% against the dollar, so next week it ought to fall to keep the pattern intact.  The market's response to the MPC meeting and the US jobs data may determine if the saw tooth pattern continues.  Although support in around $1.2980 may be more important, we suspect that previous resistance and retracement objective near $1.3055 should hold if this is a breakout.  The 50% retracement of the depreciation since the referendum is at $1.3430 (according to Bloomberg data). Meanwhile, the euro is consolidating a little below GBP0.9000.   The market may make another attempt, but if penetration occurs,  it may not be sustained.”