Forex Flash: Gilts sandwiched between 20-day MA and 115.75 support – RBS

According to Technical Markets Strategist Dmytro Bondar at RBS, “Gilts have stayed in a range between its 20-day MA and 115.75 support level. However, the 20-day moving average has been the main limiting factor for the market, capping any rallies since the end of January. Momentum is pretty neutral and slightly oversold even, as shown on the 20/5/5/3 oscillator, while the volume declined. The bias remains for an upside breakout, as if the 20-day MA is cleared, it could trigger a move to 117.20 onto possibly 117.78. Alternatively, a downside break would be a signal for a move to 115.67/51.”