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(Z1) Resumes Its Downtrend

GILT TECHS
  • RES 4: 128.77 High Sep 3
  • RES 3: 128.42 High Sep 7
  • RES 2: 128.18 High Sep 10, 14
  • RES 1: 127.69 High Sep 21 and key near-term resistance
  • PRICE: 126.72 @ 14:24 BST Sep 23
  • SUP 1: 126.57 2.236 proj of the Aug 20 - 26 - 31 price swing
  • SUP 2: 126.41 2.382 proj of the Aug 20 - 26 - 31 price swing
  • SUP 3: 126.14 2.618 proj of the Aug 20 - 26 - 31 price swing
  • SUP 4: 126.00 Round number support

Gilt futures have extended their sharp sell-off following today's BOE announcement. The contract has cleared support at 126.83, 2.00 projection of the Aug 20 - 26 - 31 price swing and 126.70, Jun 3 low (cont). The move lower confirms a resumption of the downtrend that started early August. The focus is on 126.57 and 126.41, Fibonacci projections. A firm short-term resistance has been established at 127.69, Sep 21 high.

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