GBP: Next target is near $1.2150 - BBH

According to the analysts at BBH, soft German factory orders and the prospects of another House of Lords inspired amendment to the Brexit bill have helped the dollar and sterling has been pushed through $1.22 for the first time since January 17.  

Key Quotes

“It had been testing the 61.8% retracement of the rally since briefly falling through $1.20.  That retracement target was $1.2260.  After several tries, it closed below that yesterday and following through selling was seen in the European morning.  The next target is near $1.2150.  The trend line from the flash crash low and the mid-Jan low comes in now near $1.2050.”

“The amendment that the House of Lords looks set to pass today calls for a more meaningful vote on the final agreement.  Prime Minister May has already made such a concessions, as we noted previously.  However, the way it is currently structured may give Parliament a choice between the deal May negotiates and no deal.  The House of Lords wants a more significant say.  The Conservatives do not have a majority in the House of Lords.  Labour, Lib Dems, and some Tory defectors look poised to provide a majority.  The measures would then return to the House of Commons next week.”