Home GBP/USD Breakout: Levels & Targets – BofA, Goldman

GBP/USD Breakout: Levels & Targets – BofA, Goldman

GBP/USD lost the very round 1.50 but  is certainly giving a fight and battling over this level. What’s next for cable?

The team at Bank of America Merrill Lynch examine the technical levels for pound/dollar.

Here is their view, courtesy of eFXnews:

With the USD bull trend intact, attention turns to the ongoing breakout in GBP/USD.

On short-term charts Bank of America Merrill Lynch notes that GBP/USD has just broken down from its 3d contracting range; resuming its larger bear trend in the process.

Downside targets are seen to 1.4813 (Jul’13 lows). Pullbacks should not exceed 1.5102 (Mar-10 high),” BofA projects.

GBPUSD daily chart bearish long term downtrend resumed March 12 2015

On long-term charts, Goldman Sachs thinks the market has potential to go even far below 1.48.  

“Last year’s high (1.7192) failed at multi-decade resistance 1.6750-1.7178 where a number of historical peaks and troughs have converged since ~’96. It’s now worth considering whether the market can eventually move back down to the broader range lows,” GS notes.

The past three major cycle troughs (in ’92, ’01 and ’09) were all set between1.4168 and 1.3503. So while further confirmation is likely needed, it seems feasible that GBPUSD could eventually go far below 1.50/1.48,” GS projects

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.