Cable low and bottom will be in 1Q17, if history repeats says BofA Merrill

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23 November 2016

Cable low and bottom will be in 1Q17, if history repeats says BofA Merrill

"If history proves anything, it often repeats or at least rhymes. In the three GBP/USD declines highlighted below there was a six-quarter decline followed by a seventh quarter that marked the low. This occurred in the late 1970s, mid 1980s and in the early 2000s. Refuting a seventh quarter low is the accelerated 2008 decline, which saw 5/6 quarters decline with the sixth (1Q2009) making the final low.

In our view, recent quarterly price action is more similar to the prior highlighted occurrences".

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