Forex Flash: Gilts reach support at 116.54 – RBS

According to Technical Markets Strategist Dmytro Bondar at RBS, “Gilts have reached a key support level of 116.54 after forming a Tweezer top pattern. The level is likely to determine how much downside will be before turning constructive again. If broken, the price could dip to 116.11 or even 115.75. In the long-term, a pennant on a daily chart suggests there would be good chances of extending the rally to 118.37 onto 119.00. These are Fibonacci levels on a weekly continuation chart, while the caveat would be a sustained break below 116.54.”