Forex Flash: Gilts remain at support as risk abounds – RBS

FXstreet.com (Barcelona) - Gilts consolidated near the 118.61 Fibonacci level and gap support, as well as approaching the trend-line after forming an outside session on Friday. According to Dymtro Bondar, a Technical Markets Strategist at RBS, “The overall picture suggests risks are skewed to the downside with high likelihood of correction to 118.37 and possibly 118.02 should the first support of 118.61 be broken (the 123.6% Fibonacci projection from the March impulse wave).”

In particular, the 118.37 level marks a former resistance and also lies near the support trendline, as shown on the chart. If it gets broken, a major change in sentiment could be expected – for the time being though the trend remains in place.