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(U3) Outlook Remains Bearish

GILT TECHS
  • RES 4: 97.91 38.2% retracement of the Mar - Jul downleg (cont)
  • RES 3: 97.84 High Jul 19 and the bull trigger
  • RES 2: 96.19/81 High Jul 31 / 27
  • RES 1: 95.57 High Aug 8
  • PRICE: 95.03 @ Close Aug 8
  • SUP 1: 93.70 Low Aug 4
  • SUP 2: 93.45 76.4% retracement of the Jul 7 - 19 rally
  • SUP 3: 92.82 Low Jul 12
  • SUP 4: 92.09 Low Jul 7 and a key support

A bearish theme in Gilt futures remains intact and this week’s gains are considered corrective - for now. The contract has recently breached 96.11, the Jul 21 low, and cleared the 20-day EMA, reinforcing a bearish theme. The move lower signals scope for an extension towards 93.45 next, a Fibonacci retracement. Initial firm resistance is at 96.19, the Jul 31 high. A break would signal scope for a stronger short-term recovery.

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