EUR/GBP outlook is extremely favourable - Natixis

EUR/GBP outlook is extremely favourable, as the pair has broken above a major resistance level at 0.8750 (weekly parabolic), according to Micaella Feldstein, Research Analyst at Natixis.

Key Quotes

“An ascending channel has developed in the daily chart, weekly volatility has picked up and weekly indicators are upbeat, all of which also suggests the pair has significant upside potential.”

“In this context, dips will be seen as corrective and the EUR/GBP is expected to head towards 0.88650.8880 (ascending resistance trendline) before 0.8933-0.8946 (Fibonacci projections) and 0.89930.90 (descending resistance trendline). A test of the resistance around 0.9038-0.9050 (upper band of quarterly Bollinger) is also on the cards.”