Forex Flash: Gilts target upside breakout – RBS

According to Technical Markets Strategist Dmytro Bondar at RBS, “Gilts have been testing 20-day MA, though didn’t ultimately manage to break it and stayed in the range of 115.90 – 116.75, as momentum remained neutral (the 20/5/5/3 slow stochastic is slightly oversold. However this is not a strong indication of extreme conditions and while there are no clear signals suggesting a break in either direction, a continuation of the range is expected for the time being.”

“As the 20-day MA has been the main technical limiting factor, if it gets broken, an upside move to 117.00/20 can be triggered.” he notes.