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Free AccessBack Below the Key 10-dma on Upbeat Brexit Trade Deal Hopes
- Increased optimism for a Brexit trade deal provided a general boost for GBP Tuesday, allowed EUR/GBP to ease away from yesterday's high of Gbp0.9149 to Gbp0.9022.
- The move saw the cross move back below its key technical 10-dma (current Gbp0.9065) as rate extended its corrective pullback away from the topside of its 2.0% 10-dma envelope seen Friday when it touched Gbp0.9230.
- Whilst rate can hold below the 10-dma it keeps the outlook bearish, with the base of the 1.0% 10-dma envelope seen at Gbp0.8974. Interim support noted at Gbp0.9022, stronger into Gbp0.9000.
- Little reaction to the release of UK CPI. Flash PMI's due at 0930GMT but Brexit headlines remain the key driver for GBP direction.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.