GBPUSD could take a breather in the next few days - Natixis

Micaella Feldstein, Research Analyst at Natixis, expects that the GBPUSD could take  a breather in the next few days as the daily indicators have turned around and as the weekly stochastic is in the overbought territory.

Key Quotes

“Against this backdrop, a dip towards 1.2770-1.2785 (50-week moving average) ahead of a support at 1.2660 (9-week moving average) is highly likely. Since an upside bubble has emerged on the weekly chart, the cross should soon resume the upside, targeting 1.2990-1.30 (rising trendline). The clearance of the latter would underpin bullish impetus to 1.3130 ahead of 1.3250-1.3270 (Fibonacci extensions). The supports are at 1.2852, at 1.2770-1.2785, at 1.2708/1.2720, at 1.2660 and at 1.2502.”