As sterling felt the impact of a......>

EURO-STERLING: As sterling felt the impact of a retreating stock market , and

EUR/USD proved itself to be more resilient to the risk off pressure, so EUR/GBP

extended it recovery, having broken back above its key technical 10-dma earlier

in the Asian session. The cross moved on to Gbp0.9015 into the Europe close,

holding just shy of a challenge on the topside of its 1.0% 10-dma envelope,

which by time had edged to Gbp0.9026. Rate has since retreated back to

Gbp0.8990, tracking the post Europe close sell off in EUR/USD, as it plays catch

up on risk off pressure. Whilst EUR/GBP can hold above its 10-dma it will keep

the current underlying buoyant tone in place, but failure to push outside of the

1.0% envelope could open a retreat back toward the 10-dma(currently at

Gbp0.8937).