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15 May 2013
Forex Flash: Gilts face acute headwinds as support tested – RBS
FXstreet.com (Barcelona) - Gilts breached the 117.66 support level, pointing to the likelihood of further weakness towards the next major support of 117.05. However, the 20/5/5/3 slow stochastic reached oversold region, which might be supportive for the price action for the time being.
Overall, “the market remains bearish and after breaking the 117.66 support, I would expect a test of 117.05 and potentially 116.50. Bear in mind there is also a minor support at 117.43. Caveat is a sustained recovery above 118.61 (or a close above the 118.94 gap).” notes Dmytro Bondar, a Technical Markets Strategist at RBS.
Overall, “the market remains bearish and after breaking the 117.66 support, I would expect a test of 117.05 and potentially 116.50. Bear in mind there is also a minor support at 117.43. Caveat is a sustained recovery above 118.61 (or a close above the 118.94 gap).” notes Dmytro Bondar, a Technical Markets Strategist at RBS.