GBP/USD: Potential to climb as high as 1.35 on strong April seasonals – BofA

Economists at the Bank of America Global Research discusses GBP/USD seasonal outlook. They believe that strong April seasonals may result in cable rallying to upper end of channel at 1.35.

Scope for a rally in April

“The markets showed support for price at 1.30 in March and we presume this is a level buyers may defend until something fundamental/macro changes to weaken GBP.”

“Since 1999 in April, GBP/USD is up 78% of the time, in May is down 78% of the time and in June up 61% of the time.”

"We consider long GBP/USD on a March month-end dip while still above 1.30 support. The top of the channel in April is at 1.35."

See: GBP/USD is nearing the exhaustion of this decline – DBS Bank