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Britain's FTSE steadies near 4-1/2 year peaks

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LONDON, Jan 22 (Reuters) - Britain's benchmark share index steadied near its highest level in four-and-a-half years on Tuesday, although some technical indicators suggested the rally may peter out in the near term.

The blue-chip FTSE 100 was roughly flat at 6,182.60 points by 0807 GMT -- following a move that saw it hit fresh peaks earlier this week as an improving economic backdrop drove more investors out of bonds and into higher-yielding equities.

However, the FTSE 100's strong run since the start of the year - which has seen the index gain around 5 percent since the start of 2013 - has now put it in "overbought" territory, according to technical analysis.

The FTSE 100's relative strength indicator (RSI) is currently at around 74 - above the 70 point level which shows that an index is technically "overbought" and which is often used by some traders as sign to sell in the near term. (Reporting by Sudip Kar-Gupta)