(Z17) Decline Continues, 123.12-123.04...>

GILT TECHS: (Z17) Decline Continues, 123.12-123.04 Next Supports

*RES 4: 124.40 Oct 18 low, now resistance

*RES 3: 124.22/27 Oct 20 low, intraday high

*RES 2: 123.96 Oct 24 low, now resistance

*RES 1: 123.60/70 Hourly resistance

*PRICE: 123.57 @1535GMT

*SUP 1: 123.12/17 Sep 28, intraday lows

*SUP 2: 123.04 1% volatility band

*SUP 3: 122.60 Jan 26 low

*SUP 4: 122.08 Dec 1, Dec 15 lows

*COMMENTARY* Monday's rally faltered at 124.69. The subsequent drop has broken

below 123.96-123.72 support, which leaves the downside susceptible to a further

fall, as we continue to correct recent gains. The added loss of 123.46-123.32

today, now exposes the Sep 28 low at 123.12 again and the 1% volatility band at

123.04. As a result, resistance comes from 123.60-70 but likely requiring a move

back above 123.96 before any interest in a recovery will surface.