50-dma remains the anchor:......>

EURO-STERLING TECHS: 50-dma remains the anchor:

*RES 3: 0.9184/9207 High Aug 22 / Low Aug 8

*RES 2: 0.9155 1.0% 10-dma envelope

*RES 1: 0.9149 Sep 3 High

*PRICE: 0.9037 @ 16:13 GMT Sep 4

*SUP 1: 0.9016 Low Aug 27

*SUP 2: 0.9006/00 38.2% May 6-Aug 12 rally/Round number support

*SUP 3: 0.8946 Low Jul 26

EURGBP continues to trade either side of the 50-dma, with markets needing to

shake off the level to make progress in either direction. The cross holds within

the area marked by key trendline support drawn off the May 6 low and the 50-dma.

Despite the Tuesday spike, current consolidation is either, a bear flag or a

basing pattern. A flag, suggests prices will move below 0.9016 to confirm a

resumption of the bear trend. This would open 0.9000 and the late July lows of

0.8946 / 0.8892. Alternatively, if the consolidation is base building, a break

of 0.9147 would be a step in the right direction for bulls.