Cross extended its recovery to........>

EURO-STERLING: Cross extended its recovery to Gbp0.8814 into Monday's NY session

only to reverse as the EUR came under general pressure which pressed EUR/GBP

back to Gbp0.8755. Despite Monday's risk aversion being tempered into Tuesday's

Asian session the EUR struggled to benefit which allowed the cross to extend

easing toward  its key technical 10-dma, currently coming through at Gbp0.8739.

Rate touched a low of Gbp0.8743 before edging back to Gbp0.8754 into Europe.

Whilst rate can hold above its 10-dma it keeps the recent buoyant tone in place,

a break and clear below to reverse tone to bearish. Support Gbp0.8739,

Gbp0.8726(61.8% Gbp0.8671-0.8814) ahead of Gbp0.8705(76.4%). Resistance

Gbp0.8814, Gbp0.8826(topside of the 10-dma 1.0% envelope). UK Svcs PMI at

0830GMT provides data interest. BOE MPC MonPol announcement approaches on

Thursday.