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Back Below the Key 10-dma on Upbeat Brexit Trade Deal Hopes

EURGBP
MNI (London)
  • 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.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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