(H2) Short-Term Bearish Threat

• RES 4: 128.18 High Sep 10 / 14 (cont)
• RES 3: 127.94/128.00 61.8% of Aug - Oct move (cont) / High Aug 31
• RES 2: 127.47/67 High Dec 20 / High Dec 8
• RES 1: 126.76 High Dec 21
• PRICE: 125.82 @ Close Dec 21
• SUP 1: 125.65 Low Dec 21
• SUP 2: 125.44 Low Nov 26 and gap high
• SUP 3: 124.94 High Nov 25 and gap low
• SUP 4: 124.48 Low Nov 25

A steep sell-off in Gilt futures yesterday resulted in a break of support at 126.34, Dec 16 low and the contract is trading below its 20-day EMA. The break lower places on hold a recent bullish focus and instead signals scope for a deeper pullback. Attention is on support at 125.44, the Nov 26 low and a gap high on the daily chart. On the upside, resistance is at 126.76, yesterday’s high. A break of this level would ease this fresh bearish threat.