Forex Flash: Gilts remain in narrow range – RBS

According to Technical Markets Strategist Dmytro Bondar at RBS, “The price of Gilts has dipped to the 114.86 region, but found support at the 123.6% projection from the December-January impulse wave. From the safe havens, Gilts look increasingly less attractive as the overall bias remains for a range of 114.60-116.60 with a possible recovery towards 117.80 if the latter is ruptured. However, this is unlikely to happen in the near-term – for the week, we favor a range trade between 114.60 and 116.60. A break of the 114.58 level triggers a move down towards 114.00 and eventually 113.14. Conversely, an upside break points to recovery towards 117.82.”