Forex Flash: Gilts break 34-week moving average – RBS

According to Technical Markets Strategist Dmytro Bondar at RBS, “Gilts broke the 34-week moving average, which capped the trend so far, has formed a pennant on a daily chart, suggesting there would be good chances of extending the rally to 118.37 onto 119.00. There might be a pullback to the 117.00/27 region, however it is likely to be a temporary one. After that more upside to 118.40 onto 119.00 would be likely. These are Fibonacci levels on a weekly continuation chart. The primary stipulation would be a sustained break below 116.54.”