Van Outen is the second favourite behind Olympic gymnast Louis Smith with the bookmakers, and Horwood believes that she has what it takes to prove victorious.
"Denise is still shining for me. She comes with problems, but they all come with problems," Horwood told It Takes Two.
"But I think she'll win the day because she's the right mentality for it."
Van Outen is partnered by James Jordan and has been near the top of the leaderboard every week so far.
Watch Denise Van Outen's Halloween performance:
However, Sid Owen, who left the show last weekend, believes sports star Smith may have the edge in the battle for the glitterball trophy.
"I think Louis is really taking it seriously and he's passionate about it. He's not a performer and I think he's in with a good chance," said the soap actor.
Strictly continues this weekend on BBC One.