EUR/GBP managed to break and clear....>

EURO-STERLING: EUR/GBP managed to break and clear below its key technical 10-dma

Tuesday, the rate extending the corrective pullback away from its recent high of

Gbp0.8814(May4) to Gbp0.8690. Recovery failed to move back above its 10-dma

before settling within a Gbp0.8708/20 range through Asia. By time the 10-dma has

eased to Gbp0.8729 and while rate holds below keeps the current underlying

bearish feel in place. Support is noted between Gbp0.8700/0.8690, a break to

expose the base of the 1.0% 10-dma envelope which currently comes through at

Gbp0.8642. A break above the 10-dma would dent this outlook and allow for a

stronger recovery. 

- MNI TECHS: A close below Gbp0.8682, and a break of Gbp0.8671 low is required

to trigger a fresh bearish move. This would confirm a resumption of the

downtrend and open Gbp0.8621(Mar5 low). Key resistance remains Gbp0.8865(Apr7

high).