EUR/USD and GBP/USD: short term and medium term prospects on the euro and pound according to technical analysis (Natixis)

Natixis maintains a bullish bias on the EUR/USD and GBP/USD on the basis of its technical analysis.

EUR/USD: While the daily stochastic of EUR/USD is overbought, we can not rule out a very short-term downturn towards 1.0800/1.0820 (9-day moving average), and even towards the support level at 1.0707 (Bollinger's daily moving average).

These corrections will be seen as corrective and should not affect the bullish bias in place since the end of December 2016. Technical analysis suggests a strong bullish potential and a new 1.0940/52 zone test. A break from these thresholds would strengthen the bullish momentum and target 1.0985/1.10, 1.1130 and 1.1220.

GBP/USD: The outlook for the GBP/USD is extremely favorable, while a bullish channel remains on the daily chart. Any fallback to 1.2840/60 support (9-day moving average) should be considered corrective. Expect a resistance test around 1.30/1.3010 instead.

A break above these thresholds should strengthen the bullish momentum in the direction of 1.3130, ahead of 1.3250/70 and 1.3370/90.