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Pullback Considered Corrective


Holding Above Recent Lows


BLOCK, Large 3Y Midcurve Put Condor

Early Focus on UK Retail Sales

MNI (London)

Recovery off Thursday's corrective pullback low of $1.3065 picked up momentum through the 1600BST fix, momentum lifting it back
above $1.3200, then breaking the 76.4% retrace level at $1.3219(76.4% $1.3267-1.3065) to a high of $1.3224 ahead of the close(close $1.3214). Move also saw EUR/GBP break back below its support at Gbp0.9000, extending the move to challenge its support at Gbp0.8970. Asia took over the baton of USD sales, edged cable on to $1.3251 ahead of the European open, where it encountered some profit take headwinds, though pullback so far remains very shallow. EUR/GBP is currently probing below Gbp0.8970. Early focus on UK Retail Sales(median ex-auto 0.2%mm, 1.5%yy) and Public Borrowing data. Flash PMI's due today, UK data at 0930BST with focus on Svcs(median 57.0).
Support seen back at $1.3210/00, $1.3185/80, $1.3150. Resistance $1.3251, $1.3267 ahead of $1.3280/85, with the $1.3300-15 key resistance area moving into view.

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