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(U2) Pullback Extends

GILT TECHS
  • RES 4: 118.88 High Aug 4
  • RES 3: 118.10 High Aug 10
  • RES 2: 117.15 High Aug 15 and key short-term resistance
  • RES 1: 115.91 High Aug 17
  • PRICE: 114.33 @ Close Aug 17
  • SUP 1: 114.08 Low Aug 17
  • SUP 2: 113.69 61.8% retracement of the Jun 16 - Aug 2 upleg
  • SUP 3: 113.03 Low Jun 30
  • SUP 4: 112.24 76.4% retracement of the Jun 16 - Aug 2 upleg

Gilt futures remain vulnerable and yesterday’s sharp sell-off reinforces the current bearish climate. Recent weakness has resulted in a break of trendline support drawn from the Jun 16 low. Attention is on 113.69, a Fibonacci retracement. A break would signal scope for a continuation lower and open 113.03, the Jun 30 low. On the upside, initial resistance is seen at yesterday’s 115.91 high. A firmer level has been defined at 117.15, the Aug 15 high.

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