EUR/GBP: Risks remain on the downside - Natixis

According to Micaella Feldstein, Research Analyst at Natixis, risks remain on the downside for EUR/GBP cross as bearish parallels are still intact on the daily chart and the weekly indicators remain bearish.

Key Quotes

“Besides, the 0.8780-0.88 important area (50% Fibonacci retracement of the 0.8313-0.9310 wave / April 17- August 17) was eroded. Against this backdrop, the cross is seen to retreat to 0.8708-0.8720 (9-month moving average).”

“We’ll be vigilant since a break below the latter supports would provide fresh bearish impetus to 0.8655-0.8672 (daily Bollinger lower band) ahead of 0.8532-0.8550 (weekly Bollinger lower band). The resistances are at 0.8780-0.88, at 0.8860-0.8868, at 0.8888-0.89, at 0.8981-0.8995.”