Forex Flash: 117.66 level puts wrap on Gilt selloff – RBS

FXstreet.com (Barcelona) - According to Technical Strategist Dmytro Bondar at RBS, “Gilts reached support at 117.66, which might pause further weakness in the near-term, but remain bearish post 118.64 breakout and forming a gap around the level. The latter region of 118.61/64 has become a major resistance for the market.”

Additionally, “The 20/5/5/3 slow stochastic reached oversold region, which adds to the argument of a pause in the selloff for now. However, the market remains bearish and after breaking the 117.66 support, We would expect a test of 117.05 and potentially 116.50. Bear in mind there is also a minor support at 117.43. The caveat is a sustained recovery above 118.61 (or a close above the 118.94 gap).” he adds.