Last week, Bank of America Merrill Lynch recommended buying GBP/USD on a break of 1.6843.
The trade idea generated plenty of discussion around here but it was never activated as the pair topped out at 1.6839 last week. But today cable touched 1.6858 to activate the trade.
Their target is 1.7113 with a stop at 1.6770.
They say its only a tactical trade and they expect a major turn toward USD strength in the months ahead.
So far, it’s a tough start to the trade with the pair sliding down to 1.6808.
GBPUSD daily
