GBP/USD: Expect a new wave of rebounds - Natixis

Analysts at Natixis provide a brief technical outlook for trading GBP/USD in the short to medium-term.

Key Quotes:

“Given that the daily stochastic has turned downward, pullbacks cannot be ruled out towards 1.2443-1.2458 (daily parabolic), possibly 1.2385-1.24 (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 1.2660-1.2680 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).”