Consolidation in Asia saw the cross...>

EURO-STERLING: Consolidation in Asia saw the cross contained within a relatively

tight range of Gbp0.9018/30. Early Europe has seen Brexit warnings voiced by

ex-MPC member Posen applied fresh pressure on the pound but cross has held off a

retest of its earlier high, as well as holding off Monday's high of Gbp0.9033.

With sterling remaining on its Brexit back foot, UK Parliament returns today

from its Summer recess which could provide for an increase in Brexit comment,

the cross retains an underlying buoyant tone. A break of Gbp0.9037(61.8%

Gbp0.9099-0.8938) to expose Gbp0.9061(76.4% Gbp0.9099-0.8938) ahead of stronger

resistance area between Gbp0.9099/0.9102(Aug28 high/top of the 10-dma 1.0%

envelope). Support seen on approach to Gbp0.9000.