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4 Jun 2013
Flash: Gilts remain bearish in long-term – RBS
FXstreet.com (Barcelona) - According to Technical Strategist Dmytro Bondar at RBS, “A Gilt bounce to 116.26 (the 61.8% retrace of the November-February move) is possible in the near-term.”
Overall, the market remains bearish below 116.88 amid a series of new lows and methods continuation pattern, as a Fibonacci level of 116.88 and the recent gap of 116.41 keep a strong resistance region for the price.
“There is also a failure swing on the 20/5/5/3 slow stochastic oscillator, suggesting there might be some consolidation before moving to lower targets of 114.80 and below 114.31/08. The upside should be capped by the 116.88 level. If broken, the view would require re-assessment.” Bondar warns.
Overall, the market remains bearish below 116.88 amid a series of new lows and methods continuation pattern, as a Fibonacci level of 116.88 and the recent gap of 116.41 keep a strong resistance region for the price.
“There is also a failure swing on the 20/5/5/3 slow stochastic oscillator, suggesting there might be some consolidation before moving to lower targets of 114.80 and below 114.31/08. The upside should be capped by the 116.88 level. If broken, the view would require re-assessment.” Bondar warns.