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17 Jul 2013
Flash: Gilts face bearish outlook – RBS
FXstreet.com (New York) - According to Technical Strategist Dmytro Bondar at RBS, “Gilts are trading in a triangle (bearish continuation pattern), as yesterday’s Harami cross marks the end of a bullish correction.”
“In the short-term, a re-testing of the triangle support at 111.80/112.00 can be expected with 20-day MA pivot point of 112.24. In the long-term, the view remains bearish and should the triangle boundary be broken, a resumption of the downtrend would be expected to 2.8% and above yield targets. A caveat would be a break above the top triangle boundary of 113.36.” Bondar recommends.
“In the short-term, a re-testing of the triangle support at 111.80/112.00 can be expected with 20-day MA pivot point of 112.24. In the long-term, the view remains bearish and should the triangle boundary be broken, a resumption of the downtrend would be expected to 2.8% and above yield targets. A caveat would be a break above the top triangle boundary of 113.36.” Bondar recommends.