Forex Flash: Gilts grounded in support though incur long-term woes – RBS

FXstreet.com (Barcelona) - “Gilts reached a strong support region near the 118.64 Fibonacci projection from the February 13 impulse wave; and formed an inside session yesterday, suggesting the selloff should be limited by 118.64 in the near term (below that support would be at 118.00).” states Technical Strategist Dmytro Bondar at RBS.

However, the long-term picture becomes quite negative: a sustained break below the 20-day MA, and 119.00/27 support and a looming bearish divergence on the slow stochastic chart suggest that in the long-term the market is becoming bearish and a bounce from the support level would see a strong obstacle near the 20- day MA – particularly 119.24/27 and 119.73.