GBP has lost 3% against the greenback and 1.6% against the euro - BBH

Analysts at Brown Brothers Harriman explained that sterling is one of the worst performing major currencies this month.  

Key Quotes:

"It has lost 3% against the greenback and 1.6% against the euro."

"Against the dollar, sterling returned to levels below $1.28 not seen since the late June."

"However, the downside momentum stalled, and new buying materialized before the weekend."

"The $1.2900-$1.2930 area offers initial resistance."

"The technical indicators are improving.

The MACDs are the last to turn but are poised to do so in the coming days."

"We suspect near-term potential extends toward $1.2975-$1.3000. These sterling gains may be more a function of a weaker US dollar than a bullish outlook for sterling."

"The euro is poised to extend its gains against sterling."