Forex Flash: GBP/USD, range breakout allows 1.35 longer term - BBH

After the largely discounted headline of a UK downgrade, which became effective last Friday, the Sterling appears to have broken out of the consolidiative pattern that it has traced out since early 2009, says Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman. The downside resolution of the pattern, in the eyes of Marc, "will allow sterling to decline toward $1.48-$1.50 and possibly even back down to the $1.35 area in the somewhat longer term" he said. Should GBP/USD regains the $1.56-$1.57 area, it would negate this view, Marc adds.