6 Jun 2013
Flash: Gilt support fortified at 115.29 – RBS
FXstreet.com (Barcelona) - Gilts remain bearish below in the long-term, however in the short-term, a bounce from the 115.29 support level (38.2% retracement from the February-March impulse wave) would likely to occur up to the 116.88 level.
According to Technical Strategist Dmytro Bondar at UBS, “This will occur as oscillators are turning bullish and yesterday’s Tweezer Bottom confirm the near-term recovery. The extent of the bounce will be determined by a test of the 116.26 level: if broken, then 116.868 would be likely to see a bearish reversal. In the long-term, we favor selling at 116.80/88 for a move 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.”
According to Technical Strategist Dmytro Bondar at UBS, “This will occur as oscillators are turning bullish and yesterday’s Tweezer Bottom confirm the near-term recovery. The extent of the bounce will be determined by a test of the 116.26 level: if broken, then 116.868 would be likely to see a bearish reversal. In the long-term, we favor selling at 116.80/88 for a move 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.”