David Wallace-Hadrill has suggested that this sketch is of the town of Melrose,1 presumably because there is a sketch of Melrose Abbey on the reverse of this page: folio 53 (D26198). If we follow this suggestion, a view north-west along the High Street from the Market Square is plausible, because the road slopes downwards (as in the sketch), and looks towards the hills around Gattonside, which in the sketch seem about the right height and shape.
Considering similar looking sketches elsewhere in this sketchbook, however, a more likely explanation is perhaps a view east down Edinburgh’s Royal Mile. See folio 1 verso (D26096; CCLXVIII 1) for references to various sketches of the Royal Mile in this sketchbook.
David Wallace-Hadrill, ‘1831 | 1834’, [circa 1991], Tate catalogue files.