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26 Jun 2013
Flash: Gilts face long-term bearishness – RBS
FXstreet.com (New York) - “The yield chart has formalized a large inverse head and shoulders pattern for Gilts with 2.8% and 3.13% targets, being the 161.8% and full 200% projection from the head-to- neckline distance.” notes Technical Strategist Dmytro Bondar at RBS.
However, a short-term bounce from the 2.6% support is expected to bring yield back to 2.27% levels (potentially back to the neckline). 20-day MA is a key trailing resistance to watch. According to Bondar, “The price chart shows reversal candlestick pattern looming today (either inside session or homing pigeon depending on the close), pointing to a bounce to 112.73 onto 114.08/92.”
However, a short-term bounce from the 2.6% support is expected to bring yield back to 2.27% levels (potentially back to the neckline). 20-day MA is a key trailing resistance to watch. According to Bondar, “The price chart shows reversal candlestick pattern looming today (either inside session or homing pigeon depending on the close), pointing to a bounce to 112.73 onto 114.08/92.”