EUR/GBP: Larger rally is on the cards - Natixis

Micaella Feldstein, Research Analyst at Natixis, explains that the break of 0.8544-0.8560 (weekly Bollinger moving average) for EUR/GBP pair underpins bullish impetus all the more so as the daily volatility tends to increase and as the daily indicators have turned bullish.

Key Quotes

“Against this backdrop, a larger rally is on the cards in the coming days  towards 0.8630-0.8646 (declining trendline). The break of this area would pave the way to 0.8674 (Fibonacci extension) and the 0.8720 barrier (38.2% Fibonacci retracement of the 0.9403-0.8303 bearish wave / oct 16-dec 16).”

“The supports stand at 0.8544-0.8560, at 0.85, at 0.8453-0.8471, at 0.8380-0.84 and at 0.8350.”