(U3) Recent Break Lower Highlights A Bearish Threat

• RES 4: 98.00 Round number resistance
• RES 3: 97.91 38.2% retracement of the Mar-Jul downleg (cont)
• RES 2: 97.84 High Jul 19 and the bull trigger
• RES 1: 96.81 High Jul 27
• PRICE: 96.13 @ Close Jul 31
• SUP 1: 95.11 Low Jul 28
• SUP 2: 94.96 50.0% retracement of the Jul 7 - 19 rally
• SUP 3: 94.58 Low Jul 17 and a key near-term support
• SUP 4: 94.20 Low Jul 13

Gilt futures traded lower last week and in the process breached support at 96.11, the Jul 21 low. This highlights a bearish threat and note that the 20-day EMA, at 95.72, has also been breached. A continuation lower would open 94.58, the Jul 17 low. On the upside, key short-term resistance is unchanged at 97.84, the high on Jul 19. A break is required to resume the uptrend. Initial firm resistance is at 96.81, the Jul 27 high.