Sterling looks better against the euro as compared to USD - BBH

Research Team at BBH, notes that the sterling advanced last week but was stymied by a trendline which marks the top of a consolidation pattern sterling has been in since the referendum. 

Key Quotes

“The trendline can be drawn off June 27, mid-July and early-August highs.  It was found near $1.3280 before the weekend, corresponding to the 50-day moving average.  The trendline is around $1.3245 at the end of next week.  Some technicians also are drawing a trendline off the July 6 low (~$1.28) and the mid-August low(~$1.2865), to form a potential triangle or pennant pattern.  Both are traditionally continuation patterns.  The RSI is rolling over, but the MACDs have not turned.  The fast Stochastics have turned down, but the slower Stochastics have not quite made the turn yet.  

Sterling looks better against the euro.  The euro snapped a five-week advance against sterling, falling about 1.5%.  The losses were sufficient to push the five-day moving average below the 20-day average for the first time since the start of the month.  Although the euro had made new cyclical highs against sterling this month, the RSI and MACDs failed to confirm it; thus leaving a bearish divergence in the wake.   Key support is seen near GBP0.8480."