EURGBP: Anticipate a stronger recovery in the coming days - Natixis

In view of the Micaella Feldstein, Research Analyst at Natixis, the increase in the daily volatility of EURGBP and the turnaround of the daily indicators suggest the emergence of an upside bubble on the daily chart.

Key Quotes

“Besides, important technical thresholds at 0.8640 (weekly Bollinger moving average- weekly pivot) and at 0.86 (declining trendline) have been eroded. At last, the weekly indicators have turned around. Against this backdrop, we anticipate a stronger recovery in the coming days to 0.8730 ahead of 0.88-0.8810 (declining trendline). The break of the latter would provide fresh bullish impetus to 0.8885 and 0.8952 (weekly parabolic). The supports lie at 0.8640-0.8660, at 0.86, at 0.8572 and at 0.84800.8504.”