Broke and closed above the 200-dma....>

EURO-STERLING: Broke and closed above the 200-dma at Gbp0.8835 Monday, the rate

extending the recent recovery to Gbp0.8857 before momentum faded. Cross did

manage to correct back to Gbp0.8828 post London fix before it settled around

Gbp0.8840 into the close. Consolidation continued into Asia as rate remained

around Gbp0.8840, eventually eased to challenge that Gbp0.8835 level(200-dma)

which held. Rate recovered to Gbp0.8848 in early Europe, though held off

Monday's high, the move seen driven more by USD demand as it moves up to

challenge resistance in DXY at 96.15, and sterling seen as the softer currency.

With market on Brexit headline watch sterling remains on the back foot with no

positive news seen on the near term horizon. Resistance remains at Gbp0.8857

ahead of Gbp0.8880(1.0% 10-dma envelope). A break and close below the 200-dma

now seen needed to relieve some of this upside pressure.