Bank of America Global Research discusses GBP/USD technical outlook on the long-term charts and sees an opportunity in waiting for buying a dip into the 1.33-1.34 level.
"The low 1.40s was a support area for many quarter end closes during the 1990s up until Brexit risks began mounting. The break below 1.40 has turned previous support into resistance. In 2018 and again in 2021 spot failed to close above this resistance area. This year it made highs above it such as 1.4237. In 2018 it made highs of 1.4377. But by the end of the quarter no breakout was recorded. The low 1.40s remains resistance from this longest term view," BofA notes.
"Determining which time frame matters more is a tough task. Selling the low 1.40s on the quarterly chart could align with a dip on the monthly chart. The same trend line on the monthly chart bullishly broke ending December 2020. This breakout also broke the neckline located in the 1.34s of a head and shoulders bottom. Necklines are often retested and serve as good buy points such as the 1.33-1.34 area," BofA adds.