UK 10-yr Gilt – Stuck at 23.6% Fibo

Rebound from the low of 125.627 on the back of a bullish price RSI divergence and a bullish MACD crossover has run into resistance at 127.23, which is 23.6% Fibo resistance of the sell-off from 132.424-125.627.

Given the bullish divergence on the 4-hr and bullish pin bar on the daily chart the odds of a break above 127.23 and a rise to 128.00 are high.

Only a failure at 127.23 followed by a break below 126.37 would signal loss of bullish momentum.