The share is meeting an important level. We suggest caution because this point could stop the bullish trend.

The fundamentals remain very fragile and the gradual downward revisions on EPS imply to be careful. We also note the over-valuation of the stock with a P/E ratio estimated at 33.2 for 2014.

Technically, the security could run out of steam close to the GBp 127.2 resistance. Indeed, the stock is moving in an upward trend in the short term but it could know a halt. In this context, the downward movement could improve and it should expect a return to GBp 118.5. Indicators that show an overbought situation confirm this scenario.

The technical configuration and fundamentals lead us to predict a consolidation phase, at least in the short term. The GBp 127.2 should play its full role and stop the upward trend initiated in the short term. Therefore, in order to take advantage of this technical correction, a short position may be opened in the current area to target GBp 118.5. In case of further bullish acceleration, the stop loss will be triggered above the GBp 127.2.