EUR/GBP pair could take a breather - Natixis

Since the daily stochastic is overbought, the EUR/GBP pair could take a breather by falling back to 0.9153 (9day moving average) even to 0.9089-0.91 (daily Bollinger moving average), according to Micaella Feldstein, Research Analyst at Natixis.

Key Quotes

“These dips won’t affect the underlying upside channel: upside parallels have indeed emerged on the weekly chart and upside parallels are intact on the daily chart.”

“Against this backdrop, we expect a new round of rallies to 0.9240 (daily Bollinger upper band). A break of this threshold would provide fresh bullish impetus to 0.9292-0.9308 (monthly Bollinger upper band) and 0.9403-0.9415 (around Oct 16 high). The supports stand at 0.9140/53, at 0.9089-0.91, at 0.8973 and at 0.8889.”