‘Market Trends Daily’ technical research note from Natixis says gilt traders need to watch out for rebounds.
Given that the daily stochastic is recovering and that the weekly stochastic remains upbeat, watch out for rebounds. However, it will take a clean breakout above the resistance around 125.87-126 (daily parabolic) to dispel the risk of a pullback towards 123.60 (ascending support trendline), opening instead the way for a pronounced rise towards the resistance at 126.48 (weekly Bollinger moving average).
A breakout above this last level would instill new upward momentum towards the resistance at 126.80 (Fibonacci projection) before the one around 127.24-127.40 (descending resistance trendline).
Supports are located at 124.10, at 123.43-123.60, at 122.80-122.93 and at 122.06.