GBP/USD:  Scope for additional near-term gains - BBH

According to analysts from Brown Brother Harriman, the next target in the GBP/USD pair could be seen at 1.2775 and they warn that there may be scope to rise to 1.2830 before the end of the year.”

Key Quotes: 

“While the Federal Reserve meeting is the highlight this week, the UK has a number economic reports and the Bank of England's Monetary Policy Committee meets.   The UK reports inflation tomorrow, followed employment, and then retail sales a few hours before the central bank decision.”

“Sterling saw $1.50 just before the referendum results were announced in late June.  It recorded a low near $1.1840 on the so-called flash crash on October 7.  Since then it has gradually climbed higher.  The best level since October 7 was recorded on December 6 at $1.2775.”

“Today's low near $1.2545 is the low for December (thus far).  There appears to be scope for additional near-term gains. While the $1.2775 is the next target, there may be scope before the end of they year toward $1.2830.”

“ Even though the Fed will most likely hike rates, we are concerned that many will be disappointed if it does not upgrade its forecasts.  We do not think this is particularly realistic, given the official comments and the lack of concrete details from the new Administration.”