Forex Flash: Will gilt upside materialize? – RBS

Gilts broke out of the 114.60-116.60 range to the upside amid bullish long-term charts, as was discussed in the weekly publication. In addition, the MACD weekly histogram also shows a positive divergence with the price action. According to Technical Markets Strategist Dmytro Bondar at RBS, “The market though formed a gap on open, which deemed to be filled, as a test of the 117.15 resistance was rejected, suggesting a pause in rally for now and a pull back to 116.40/48 to fill the gap before extending the gains to the 117.82 target. Alternatively, a break of 117.14 would point to a higher chance of rallying to 117.80 without the pullback.”