GBP/USD: Pullbacks seen as buying opportunity - Natixis

Dhwani Mehta FXStreet

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.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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