GBP/USD: Pullbacks seen as buying opportunity - Natixis

Analysts at Natixis provide a brief technical outlook for trading GBP/USD in the week ahead.

Key Quotes:

“Given that the daily stochastic has turned downward, pullbacks cannot be ruled out towards 1.2458-1.2470 (weekly Bollinger moving average), possibly the support at 1.24 (daily Bollinger moving average).”

“These pullbacks will be an opportunity for the pair to gather its breath before staging a new rebound.”

“The development of an ascending channel in the daily chart and the sharp turnaround of the weekly indicators point to a new wave of rebounds towards 1.2660 before 1.2740-1.2760 (upper band of daily Bollinger and 9- month moving average).”

“A breakout above these last levels would instil new upward momentum towards 1.2880-1.29 (upper band of weekly Bollinger) before 1.3060 (ascending resistance trendline) and 1.3150 (Fibonacci projection).”

“Take advantage of any pullbacks towards 1.2458-1.2470 to buy the GBP/USD, with a first target at 1.2760, setting the stop loss below 1.24.”