Forex Flash: Gilts eye 118.61 support – RBS

FXstreet.com (Barcelona) - According to Technical Strategist Dmytro Bondar at RBS, “Gilts have broken the trendline after the formation of a dark cloud cover candlestick pattern on Monday close. The Gilts market was the first safe heaven FI market to break the trendline.”

In particular, the first meaningful support lies at 118.61, the 123.6% Fibonacci projection from the March impulse wave. Below that support would be expected at 118.37, 20-day MA and 118.02. The former marks a gap and strong polarity level from March. On the upside, 119.27 and 119.56 are resistance levels.