EUR/GBP: Dips should be short lived - Natixis

Micaella Feldstein, Research Analyst at Natixis, suggests that the emergence of an upside bubble on the daily chart EUR/GBP and the buy signal on the weekly stochastic should support the cross.

Key Quotes

“Against this backdrop, dips should be short lived and we favour another leg higher in the next days to the 0.88 psychological threshold ahead of the 0.8843-0.8851 (weekly Bollinger upper band) sounds on the cards.”

“These last resistances will be crucial for the MT term trend: a break of the latter will indeed be needed to initiate a sustained recovery towards 0.8908-0.8920, the 0.8984-0.90 area (quarterly Bollinger upper band) and 0.9144-0.9158.”

“The supports stand at 0.8670, 0.8645, at 0.860.8610, at 0.8540 and at 0.8443-0.8465.”