(U3) Cracks Several Key Resistance Levels

• RES 4: 99.27 100-dma (cont)
• RES 3: 98.00 Round number resistance
• RES 2: 97.91 38.2% Fib for Mar-Jul Downleg
• RES 1: 97.84 High Jul 19
• PRICE: 96.85 @ 16:05 BST Jul 20
• SUP 1: 92.82/09 Low Jul 12 / Low Jul 7 and the bear trigger
• SUP 2: 92.00 Round number support
• SUP 3: 91.80 1.382 proj of the Jun 1 - 20 - 23 price swing (cont)
• SUP 4: 91.36 1.50 proj of the Jun 1 - 20 - 23 price swing (cont)

Gilt futures blew through several key resistance levels in response to a lower-than-expected inflation release on Wednesday, tipping prices to their best levels since early June. The 50-dma had guided prices lower across the past three months and the close above the mark is a bullish signal - the first such close since early April. Short-term positive momentum has strengthened, and the rally is yet to trigger an overbought condition. As such, round number resistance at 98.00 and the 100-dma are the next key upside levels for bulls.