1 Aug 2013
Flash: Pressure mounting on gilts – RBS
FXstreet.com (New York) - Technical Strategist Dmytro Bondar at RBS analyses the short-term trend of Gilts.
Key quotes
“Gilts are building a pressure on the wedge support, which if broken, would point to a bearish reversal to the long-term targets as per below. However, as the price stays within the channel, it still leaves the possibility of re- testing the 113.94 region before reversal takes place.”
“This is due to the channel being in place and previously formed morning star on the candlestick chart. There is also a resistance gap at 113.12. The big picture is bearish amid a large inverse H&S on the yield chart with 2.8% and 3.13% targets to be reached by the year-end. In the near term, 2.20%/2.15% resistance region can be retested.”
Key quotes
“Gilts are building a pressure on the wedge support, which if broken, would point to a bearish reversal to the long-term targets as per below. However, as the price stays within the channel, it still leaves the possibility of re- testing the 113.94 region before reversal takes place.”
“This is due to the channel being in place and previously formed morning star on the candlestick chart. There is also a resistance gap at 113.12. The big picture is bearish amid a large inverse H&S on the yield chart with 2.8% and 3.13% targets to be reached by the year-end. In the near term, 2.20%/2.15% resistance region can be retested.”