GBP/USD outlook is extremely favourable - Natixis

In view of the analysts at Natixis, the outlook is extremely favourable for GBP/USD pair, as an ascending channel remains in evidence in the daily chart and an upward bubble is developing in the weekly chart.

Key Quotes

“Under these conditions, any pullbacks towards the support around 1.2840-1.2860 (9-day moving average) should be seen as purely by way of a correction. Watch out rather for a test of the resistance around 1.30-1.3010 (upper band of daily Bollinger).”

“A breakout above these last levels would instil strong upward momentum towards 1.3130 (Fibonacci projection) before 1.3250-1.3270 (Fibonacci projections) and 1.3370-1.3390 (ascending resistance trendline).”

“Take advantage of any pullbacks towards 1.2840-1.2860 to buy the GBP/USD, with a first target at 1.3010 (setting the stop loss at 1.2720).”