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Corrective pullback from last.........>

EURO-STERLING
MNI (London)
EURO-STERLING: Corrective pullback from last week's high of Gbp0.9031, as well
as rejection from the topside of the 10-dma 1.0% envelope(currently at
Gbp0.9024), saw rate squeeze to a low of Gbp0.8904 at the Asian open. Rate
recovered to Gbp0.8936 as Tokyo showed good demand for EUR/JPY. However, this
interest didn't last long and the EUR came under another round of downside
pressure which pressed EUR/GBP back to Gbp0.8914 ahead of the European open.
CBRT announced action at the European open which seemed to counter any fresh
pressure, prompted short EUR positions to be pared back, took EUR/GBP back
toward its earlier Asia high. Resistance expected at Gbp0.8936, stronger between
Gbp0.8950/55. Support remains into Gbp0.8900. 
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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