(H4) Correction Still In Play

• RES 4: 101.51 61.8% retracement of the Dec 27 - Jan 25 bear leg
• RES 3: 101.98 High Jan 3
• RES 2: 100.76 50.0% retracement of the Dec 27 - Jan 25 bear leg
• RES 1: 100.62 High Feb 1
• PRICE: 100.50 @ Close Feb 01
• SUP 1: 98.79/97.57 Low Jan 30 / 25 and the bear trigger
• SUP 2: 97.39 Low Dec 11 and a key support
• SUP 3: 96.67 Low Dec 5
• SUP 4: 96.10 Low Nov 30

Gilt futures traded higher yesterday. The contract has this week breached resistance at the 20-day EMA, at 99.51. The breach signals potential for an extension of the current corrective cycle and this has exposed resistance at 100.76, 50.0% of the Dec 27 - Jan 25 bear leg. Key support and the bear trigger has been defined at 97.57, the Jan 25 low. A reversal lower and a break of this support would confirm a resumption of bearish activity