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8 Apr 2013
Forex Flash: Price/volume divergence looms against Gilts – RBS
FXstreet.com (Barcelona) - Gilts continued beyond the 119.56 pivot point, being the 161.8% Fibonacci projection from the March 2013 impulse wave. According to Technical Strategist Dmytro Bondar at RBS, “The price action suggests the full wave projection of 120.52 would be tested soon.”
Depending on this test there would either be further upside to the 121.00, 121.26 and 121.82 levels or a pullback to the 119.56/27 support area. “This is where the trendline and 150% February-March Fibonacci projection both lie. It is worth noting the volume being in decline during the recent uptrend, which could be an advanced precursor of trend reversal, so the 120.52 pivot point is important to watch for a potential reversal.” he suggests.
Depending on this test there would either be further upside to the 121.00, 121.26 and 121.82 levels or a pullback to the 119.56/27 support area. “This is where the trendline and 150% February-March Fibonacci projection both lie. It is worth noting the volume being in decline during the recent uptrend, which could be an advanced precursor of trend reversal, so the 120.52 pivot point is important to watch for a potential reversal.” he suggests.