Technical Forecast for Gilts

Gilts for December held Thursday’s range beating 107.77/82 to fail just below 108.20. Watch 108.20/24 as a break higher fills the gap at 108.41. Any shorts here need stops above 108.54 for a test of resistance at 108.85 & a selling opportunity with stops above 108.95. Failure to beat 108.20 sees a test of 107.80. Below here keeps the market under pressure for 107.55/45 then 107.26 before a test of last week’s low at 107.16. We are in a strong bear trend but being oversold short term, this level should offer good support at this stage. However a break below 106.98 signals continued losses this week towards 106.80 then 106.64. Target if we continue lower are 106.10-105.97, 105.49/45, 105.30/28, & even 105.13/08.