Forex Flash: Gilts oscillate around support at 116.11 – RBS

Recently, “gilts reached a strong resistance region of 117.00 and opened with a bearish gap, suggesting there will likely be a correction in the near term. The market left gap unfilled, as 115.57 provided a major support. There is also support expected at the 116.11 retracement. The long-term view remains quite constructive, looking for a gradual recovery to 117.50/117.80 amid bullish weekly charts; but a near-term correction to 116.11 looks increasingly likely – a sustained break below 115.57 cancels the L/T bullish view.” notes Dmytro Bondar, a Technical Markets Strategist at RBS.