Analysts at Bank of America Global Research are closely monitoring head and shoulder bottom in the GBP/USD pair. In case cable pierces 1.3700/15, sterling could surge as high as 1.42.

Break below 1.3450 to put 1.32/1.3130 back in focus

“If GBP/USD continues to rally and exceeds resistance at 1.37/1.3715 then a head and shoulders bottom will have formed that targets 1.42.”

“Below 1.3450 would be bearish back to 1.32/1.3130.”