Break and clear above the 10-dma......>

EURO-STERLING: Break and clear above the 10-dma Thursday (Gbp0.8373) provided a

recovery boost for the cross, the move taking it through resistance at Gbp0.8400

and on to Gbp0.8416 before faltering. Rate drifted off to Gbp0.8370 into the

close. Consolidation in Asia, though rate did manage to ease on to Gbp0.8367,

early Europe taking it back to Gbp0.8376. 

- Rate holds above its key 10-dma, by time coming through at Gbp0.8362 and keeps

the underlying tone positive. Expect resistance into Gbp0.8400 ahead of

Gbp0.8416, Gbp0.8431 with the top of the 1.0% 10-dma envelope coming in at

Gbp0.8445. A break and clear below the 10-dma to negate the current outlook and

turn attention back toward the envelope base, currently at Gbp0.8278. Interim

support noted at Gbp0.8349/48 ahead of Gbp0.8333(61.8% 0.8282-0.8416, level

corresponds to E1.20) and into Gbp0.8300. 

- COVID-19 developments remain a key driver. UK flash PMI's at 0930GMT in focus.