Nick Nasad
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GBP/USD: What Are Some Long Term Upside Targets for Pound

Yesterday, I focused on the GBP/USD as it managed to break out of a range and speculated that the pair was ready to rally further. With the macro picture pushing the momentum behind the recent moves, and the pair testing 1-year highs, lets have a look at the long term picture to see where we are in the context of the last few years.

  • What we should look at are the key levels to the topside that could provide targets/resistance levels.
  • The clear ones I can see from this monthly chart are 1.6730 and 1.7030 - the highs from 2011 and 2009 respectively.
  • With the GBP/USD pair pretty much caught in almost a 5-year sideways trading range, a divergence between the expectations between the 2 central banks (Fed and BOE) could be the catalyst that has the Pound reaching for those 2-year and 5-year highs.
  • Therefore, as we move forward, let's keep those 2 targets in mind if the GBP/USD continues to push its advantage.