Continued Rally Still...........>

EURO-STERLING TECHS: Continued Rally Still Dependent On Stg0.8850-54 Resistance

*RES 4: Stg0.8915 Hourly base Nov 28, now resistance

*RES 3: Stg0.8891 1% volatility band

*RES 2: Stg0.8868/80 Dec 5 high, hourly high Nov 28

*RES 1: Stg0.8850/54 Dec 7, Dec 6 highs

*PRICE: Stg0.8835 @1048GMT

*SUP 1: Stg0.8790 Hourly support

*SUP 2: Stg0.8773 Dec 11 low

*SUP 3: Stg0.8725 Initial high Dec 8, now support

*SUP 4: Stg0.8687/89 1.618 swing 0.8756-0.8868, Dec 8 low

*COMMENTARY* The fate of a continued recovery is firmly in the hands of

Stg0.8850-Stg0.8854 resistance. Will need to cross back above here, if the

correction of losses from the late November high at Stg0.8982 is to continue,

with Stg0.8868-Stg0.8880 again expected to feature higher, en route to the upper

1% volatility band at Stg0.8891. Support rises to Stg0.8790-Stg0.8773. Loss of

the latter would caution.