Corrective pullback from Monday's.....>

EURO-STERLING: Corrective pullback from Monday's Gbp0.8774 extended down to

Gbp0.8656 as markets reacted to reports that the UK and EU had agreed a Brexit

text (though now awaits Cabinet, then Parliamentary approval). Pullback failed

to ease outside of its 1.0% 10-dma envelope, having traded below for most of

last week, the envelope base currently coming through at Gbp0.8639. Cross

recovered to Gbp0.8711 into the NY close but Asia late reaction to the 'deal'

saw rate drop to Gbp0.8667 before it settled back above Gbp0.8680 through the

balance of the session. Support Gbp0.8667 ahead of Gbp0.8656, with longs likely

to be pressured on a move below Gbp0.8645. Resistance Gbp0.8711.