EUR/GBP: Daily indicators are bearish - Natixis

Micaella Feldstein, Research Analyst at Natixis, suggests that even though rallies cannot be ruled out for EUR/GBP pair, a return above the 0.9037-0.9050 resistances (monthly Bollinger upper band) sounds us difficult.

Key Quotes

“The stabilization in the weekly volatility and the fact that the weekly indicators have turned around rather suggest a stronger correction move for the cross all the more so as the daily indicators are bearish. A break below the support at 0.8860 (daily Bollinger lower band) would add weight to this view, paving the way to 0.8772-0.8790 (weekly parabolic) and to 0.8609 (weekly Bollinger moving average).

The resistances are at 0.9037/50, at 0.91, at 0.9206-0.9220, at 0.9311 and at 0.94.”