Forex Flash: Gilts look to extend weakness after Fibonacci support – RBS

FXstreet.com (Barcelona) - Gilts led the way down after taking out 20-day MA and breaking the 119.00 support level. According to Technical Strategist Dmytro Bondar at RBS, “The price however reached a good support region of 118.61/71 formed by the 123.6% Fibonacci projection from the March impulse wave and a filled-not-closed gap from 27 March.”

Moreover, “There would likely to be a good reaction from the 118.61/70 region towards 119.27, but if the 118.61 level is broken, a new wave of a selloff might be triggered to the 118.02 polarity level. Below that support would be expected at 117.43. A sustained recovery above 119.27 brings back the bulls.” Bondar adds.