Forex Flash: Gilts operating in range that suggests upside bias – RBS

According to Technical Markets Strategist Dmytro Bondar at RBS, “Gilts have stayed in a range between 20-day MA and 115.75 support level, while a range breakout will be likely to determine further direction. There are no strong direction signals from the chart. However, as cross-market signals suggest, there is more likelihood of an upside breakout, which means a break of the 20-day moving average. As it was the main limiting factor for the market, a push higher would be likely to trigger a strong move to 117.20 onto possibly 117.78. Alternatively, a downside break would be a signal for a move to 115.67/51.”